Korean won breaches 1,150 won-mark to U.S. dollar

SEOUL, Jan. 5 (Yonhap) -- The South Korean currency rose to the 1,140-won level
against the U.S. dollar for the first time in about 15 months on Tuesday due to
foreigners' appetite for risky assets, analysts said.

The local currency closed at 1,140.5 won to the greenback, up 1.25 percent or
14.3 won from the previous session, marking the strongest level in about 15
months.
It also broke through the 1,150-won mark for the first time since Sept. 23, 2008
when the won hit 1,149 won per the dollar.
"The won rose at a faster-than-expected pace as offshore investors snapped up
Asian emerging currencies due to an economic recovery hopes," said Byeon
Ji-young, a currency analyst at Woori Futures Co.
During the session, the Korean unit extended its gains, touching an intra-day
high of 1,136 won in late trading, analysts said.
Amid growing optimism about a faster economic recovery, the Korean currency rose
8.16 percent versus the dollar in 2009. Hit by the U.S.-sparked global financial
meltdown, the Korean currency tumbled 25.7 percent to the greenback in 2008
alone, becoming one of the world's worst-performing currencies.
The benchmark Korea Composite Stock Price Index (KOSPI) declined 0.33 percent to
1,690.62, but foreign investors continued to buy Korea stocks, putting the brakes
on the KOSPI's further losses. Foreign investors purchased a net 385.8 billion
won (US$338.2 million) worth of Seoul stocks on the main bourse.
Analysts said the report that the country's foreign exchange reserves by $68.77
billion, the largest full-year increase on record, for the whole year of 2009
also lent some support to the won.
Experts said the Korean currency may fall or see limited ascents against the
dollar due to its recent steep gains and caution against dollar buying
intervention in the short term, but the won is widely expected to gain ground
this year, given the country's strong economic fundamentals.
"It seems to be inevitable that the trend of the won's gain would continue,
considering growing prospects for an economic rebound and upbeat outlooks for the
KOSPI," Byeon said.
sooyeon@yna.co.kr
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