Posted December. 08, 2004 22:50,
The exchange rate of Korean currency against the U.S. dollar rose (won value depreciated) by the largest margin this year, closing in on the 1060 won mark yesterday.
The Seoul Foreign Currency Market closed December 8 with the won-dollar exchange rate rising 17 won from the day before to 1058.9 won.
This sudden rise is the largest margin in which the dollar-to-won rate had changed since October 14 of last year when the won rose by 19.4 won.
Won-dollar exchange rate yesterday, which opened at 1042.7 won, steadily rose while the market was in session.
Nah Woo-shik, the chief of the Industrial Bank of Koreas financial management team, said, After offshore investors seeking profits from a sudden drop in the won-dollar exchange rate and domestic oil refinery companies seeking to pay for imported oil bought large amounts of dollars, the exchange rate rose rapidly.
Future predictions on the changing rate made by market officials are varying.
Jung Young-shik, the senior researcher of the Samsung Economic Research Institute, said, Although the falling won-dollar exchange rate seems to have calmed down for the time being, the current rate is still too high. The exchange rate is expected to slightly rise, but will most likely fall in the future.
In the meantime, stock price ascended back yesterday in four days due to international oil price decrease and the won-dollar rate increase.
The Composite Stock Price Index rose 10.67 (1.24 percent) from the previous day, closing at 871.74.