ID :
99365
Mon, 01/11/2010 - 16:11
Auther :
Shortlink :
https://www.oananews.org//node/99365
The shortlink copeid
Korean won breaches 1,120 won level to dollar
SEOUL, Jan. 11 (Yonnhap) -- The South Korean currency rose to the strongest level
against the U.S. dollar in nearly 16 months on Monday as offshore investors
dumped the greenback in expectation of the won's further ascent, dealers said.
The local currency closed at 1,119.80 won to the greenback, up 0.96 percent or
10.7 won from the previous session, marking the strongest level since Sept. 17,
2008.
"Amid the global weakness of the dollar, the won's sharp gain came as offshore
investors were betting on additional gains by the won," said Byeon Ji-young, a
currency analyst at Woori Futures Co.
During the session, the Korean unit climbed to an intra-day high of 1,117.50 won
in late trading. After the finance ministry made a verbal intervention by saying
that foreign exchange authorities would take action when needed as the dollar
sale by offshore investors is seen as excessive.
The dollar weakness continued as job data in the U.S. was worse-than-expected,
raising concerns that the recovery of the world's largest economy may be slow.
The Korean currency has sharply risen to the dollar since the start of the new
year with its value climbing about 4 percent during six sessions alone.
The Korean won tumbled 25.7 percent to the greenback in 2008 alone, hit by the
U.S.-sparked global financial turmoil. But as the financial crisis subdued and
the Korean economy is recovering at a faster pace, the won gained 8.16 percent
versus the dollar last year.
The Korean economy grew 3.2 percent in the third quarter from three months
earlier on improving domestic demand and robust exports. The country's current
account has been in the black since February, putting upward pressure on the
local currency.
Experts say that given strong economic fundamentals, the local currency is likely
to be under upward pressure to the dollar.
"In the mid-and long term, the won's rise seems to be inevitable, but the pace of
its gain could be limited due to caution against intervention," Byeon said.
sooyeon@yna.co.kr
(END)
against the U.S. dollar in nearly 16 months on Monday as offshore investors
dumped the greenback in expectation of the won's further ascent, dealers said.
The local currency closed at 1,119.80 won to the greenback, up 0.96 percent or
10.7 won from the previous session, marking the strongest level since Sept. 17,
2008.
"Amid the global weakness of the dollar, the won's sharp gain came as offshore
investors were betting on additional gains by the won," said Byeon Ji-young, a
currency analyst at Woori Futures Co.
During the session, the Korean unit climbed to an intra-day high of 1,117.50 won
in late trading. After the finance ministry made a verbal intervention by saying
that foreign exchange authorities would take action when needed as the dollar
sale by offshore investors is seen as excessive.
The dollar weakness continued as job data in the U.S. was worse-than-expected,
raising concerns that the recovery of the world's largest economy may be slow.
The Korean currency has sharply risen to the dollar since the start of the new
year with its value climbing about 4 percent during six sessions alone.
The Korean won tumbled 25.7 percent to the greenback in 2008 alone, hit by the
U.S.-sparked global financial turmoil. But as the financial crisis subdued and
the Korean economy is recovering at a faster pace, the won gained 8.16 percent
versus the dollar last year.
The Korean economy grew 3.2 percent in the third quarter from three months
earlier on improving domestic demand and robust exports. The country's current
account has been in the black since February, putting upward pressure on the
local currency.
Experts say that given strong economic fundamentals, the local currency is likely
to be under upward pressure to the dollar.
"In the mid-and long term, the won's rise seems to be inevitable, but the pace of
its gain could be limited due to caution against intervention," Byeon said.
sooyeon@yna.co.kr
(END)
