Korean won rises to yearly high to U.S. dollar on foreign stock buying

SEOUL, Sept. 17 (Yonhap) -- The South Korean currency rose to a yearly high
against the U.S. dollar on Thursday as foreign investors bought local stocks amid
hopes for a global economic recovery, dealers said.
The local currency was trading at 1,207.35 won to the greenback as of 9:42 a.m.,
up 3.95 won from Wednesday's close and the strongest level since Oct. 1, 2008.
The won's ascent came as offshore investors continued to buy Seoul stocks,
lending support to the Korean currency. Foreign investors snapped up a net 908
billion won (US$752 million) worth of Seoul shares on the main bourse on
Wednesday, the largest amount since mid-October, 2007.
The benchmark Korea Composite Stock Price Index (KOSPI) rose 0.94 percent to
1,699.2 as of 9:42 a.m., mirroring overnight gains in U.S. markets. The KOSPI
briefly touched the 1,700-mark for the first time since June 26 last year.
Analysts said the Korean currency would be under upward pressure to the greenback
as offshore investors' risk appetite revived amid rising signs of an economic
recovery, but the pace of the won's ascent may be limited due to cautions against
possible intervention to stem the won's steep rise.
sooyeon@yna.co.kr
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