South Korea won cuts losses as intervention cited
Reuters - 2 hours 1 minute ago
SEOUL, Dec 2 - The South Korean won cut much of its early losses of up to 2.9 percent against the dollar on Tuesday as some traders saw dollar-selling intervention by the foreign exchange authorities and on exporter demand for settlements.
The central bank also injected all of a planned $4 billion into local banks using its dollar credit line at the U.S. Federal Reserve for the first time, helping easing their dollar funding shortages. [ID:nSEL000381]
Still, the won <KRW=> remained under pressure from fresh worries about a slowdown in Asia's fourth-largest economy amid a global recession.
The local currency was quoted at 1,457.9/8.6 per dollar as of 0245 GMT, compared with Monday's domestic close <KRW=KFTC> of 1,440.0. It slid to as low as 1,482.9.
"The authorities kept supporting the won on the quiet, but we cannot rule out the possibility of the won's further fall," said a dealer at a foreign bank.
Earlier, a deputy finance minister said the country might need to cut its economic growth forecast for the next year, just after the central bank revised down its third quarter growth figures.
Seoul shares <.KS11> fell 2.69 percent as foreign investors sold a net 4.9 billion won worth of stocks in the country's main exchange.
Foreigners bought a combined net 622.7 billion won during the last four consecutive sessions, the longest net foreign buying streak since early June. So far this year foreign investors have sold a net 34.4 trillion won of South Korean shares.
0245 GMT 0020 GMT prev close Won <KRW=> 1,457.9/8.6 1,468.4/9.1 1,440.0 Yen/won <JPYKRW=R> 15.5663/20 15.6892/40 15.1155/28 KOSPI <.KS11> 1,030.18 1,015.44 1,058.62 (Reporting by Cheon Jong-woo and Lee Kyoung-ho; Editing by Jonathan Hopfner)
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