Korean won hits fresh 1-year high to U.S. dollar

SEOUL, Oct. 15 (Yonhap) -- The South Korean currency rose to the 1,150-won level
against the U.S. dollar for the first time in about a year on Thursday as foreign
investors showed a greater appetite for risky assets, dealers said.
The local currency closed at 1,155.10 won to the greenback, up 9.7 won or 0.84
percent from the previous session and marking the highest level since Sept. 24,
2008. It climbed to as high as 1,155 won to the dollar at one point.
"The global weakness of the dollar and stock buying by foreign investors put
upward pressure on the Korean unit," said Jeon Seung-ji, a currency analyst at
Samsung Futures inc.
The won has gained about 36 percent versus the dollar since early March as global
financial turbulence has eased.
Bank of Korea Gov. Lee Seong-tae told lawmakers that the won's recent gain
reflects a normalizing process after its sharp depreciation, noting the U.S.
dollar is entering into a long-term weakening trend.
The benchmark Korea Composite Stock Price Index inched up 0.06 percent to
1,658.99 on Thursday as foreign investors bought a net 536 billion won (US$464.7
million) worth of Seoul stocks.
Analysts said the local currency is likely to continue to move upward due to the
dollar's weakness, but added the pace of the won's ascent may slow due to
intervention cautions.
"In the short term, the Korean unit could climb to the 1,140 range against the
dollar," Jeon said. "How long the dollar continues to be weak will depend on
global stock markets."
sooyeon@yna.co.kr
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