S.Korean won down on recession fears, trims losses
Reuters - Tuesday, November 11
SEOUL, Nov 11 - The South Korean won eased against the dollar on Tuesday after weak exports data fuelled worries over the impact of a looming global recession on the country's export-driven economy.
Official data showed South Korea's exports in the first 10 days of November fell 26 percent from the same period a year earlier, adding to concerns over the impact of the global downturn on Asia's fourth-largest economy. [ID:nSEO157918]
But the won trimmed early losses as some players sold dollars to book profits from recent gains and asset managers sought the local currency after Asian stock markets rallied in the previous day, dealers said.
"Trading is thin and the market could swing sharply even on a small-scale deal," said a dealer at a foreign bank.
The local currency was quoted at 1,336.0/8.1 per dollar as of 0337 GMT, compared with Monday's domestic close <KRW=KFTC> of 1,326.3. It slid to as low as 1,359.4.
The U.S. pledged more support for struggling insurer AIG on Monday as international action to halt the financial crisis failed to divert investors from the view that the economy was in for a long and deep recession. [ID:nSP413174]
The move came a day after China announced plans to spend 4 trillion yuan on infrastructure and social services, but optimism over the stimulus package soon faded.
China and the United States are South Korea's top two export markets.
Seoul shares <.KS11> were almost flat at midday.
0337 GMT 0050 GMT prev close Won <KRW=> 1,336.0/8.1 1,349.8/2.1 1,326.3 Yen/won <JPYKRW=R> 13.6233/499 13.8185/02 13.3916/93 KOSPI <.KS11> 1,151.79 1,138.65 1,152.46 (Reporting by Cheon Jong-woo and Rhee So-eui; Editing by Anne Marie Roantree)
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