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Won Falls to 1,148 per Dollar

Posted September. 04, 2008 09:27,   


The won-dollar exchange rate yesterday rose for the fourth consecutive trading day and approached 1,150 won per dollar, though the domestic stock and bond markets have slightly stabilized.

The rate jumped 14.5 points to close at 1,148.5, the highest since 1,150.2 on Oct. 7, 2004.

As the dollar strengthened and financial institutions rushed to buy dollars, the won temporarily reached 1,159 per dollar yesterday. Though certain experts said Korea faced a financial market panic, the exchange rate fell below 1,150 won as currency authorities sold two billion dollars after the market opened and before it closed.

After soaring on worries over the weakening won and surging inflation, the bond yield began falling yesterday. The Korea Securities Dealers Association said the yield on the five-year Korea treasury bond dropped 10 basis points from a day ago to 5.95 percent yesterday.

Boosted by a buying spree by institutional investors, the benchmark stock index KOSPI jumped 19.75 points (1.4 percent) to close at 1,426.89, its first rise in three trading days. The tech-heavy KOSDAQ also rose 8.23 points (1.97 percent) to close at 426.37.

parky@donga.com jefflee@donga.com