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S.Korean won at 4-wk low as econ woes hit stocks
Reuters - 2 hours 55 minutes ago
* Won at 4-wk low as economic worries hit S.Korean assets
* Further pressure from investment trust firms, importers
* More falls seen as investors chase safer assets
By Cheon Jong-woo
SEOUL, Jan 12 - The South Korean won hit a four-week low against the dollar on Monday as persistent worries about a global recession and its impact on Asia's fourth-largest economy hammered the country's stock market.
The won <KRW=> was also hit by mounting dollar demand from local investment firms to limit currency-related risks from their overseas investments amid weaker global stock markets.
The local currency is expected to fall further as more investors are seen shunning riskier assets on the grim global economic outlook and expectations for weaker corporate profits, analysts said.
"The won is expected to weaken to a resistance line at around 1,370 as investors are flying to safer assets on hightening worries about an economic slowdown and weak companies' profits," said Jeon Seung-ji, a currency analyst at Samsung Futures Inc.
The South Korean currency was quoted at 1,358.4/9.1 per dollar as of 0600 GMT, compared with Friday's domestic close <KRW=KFTC> of 1,343.0. It fell to as low as 1,365.9, its weakest since Dec. 16, 2008.
South Korean shares <.KS11> ended down 1.94 percent as foreign investors sold a net 104.7 billion won worth of stocks in the country's main exchange after initial net buying.
Foreigners unloaded a combined net 217.5 billion won during the previous two consecutive session.
Adding more concerns over a slowdown in South Korea's economy, the country's exports fell 40 percent during the first 10 days of January from a year ago, data from the Korea Customs Service showed.
The country's economy contracted by more than 4 percent in the fourth quarter of 2008 from the previous quarter, a local newspaper reported. [ID:nSEO71523]
The won may find some support as investors become cautious of possible dollar-selling intervention by the country's foreign exchange authorities.
"We should be careful from now on as the won is likely to weaken to 1,400 level once it breaks through 1,370 line," a local bank dealer said.
0600 GMT 0320 GMT prev close Won <KRW=> 1,358.4/9.1 1,360.3/1.3 1,343.0 Yen/won <JPYKRW=R> 15.0682/10 15.0960/72 14.7247/10 KOSPI <.KS11> 1,156.75 1,158.02 1,180.96
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