Won falls to 8-month low
By Kang Seung-woo
Staff reporter
The local currency lost ground sharply against the U.S. dollar on escalating geopolitical risks, with the exchange rate rising above the 1,200 won level.
The Korean won closed at 1,214.5 won per dollar, down 20.4 won from its previous close, and the lowest in eight months since Oct. 29 last year. This is the first time the exchange rate has finished above the 1,200 won level since Sept. 16 last year, when it reached 1,211.30 won against $1.
"Foreign investors have raked in dollars amid rising geopolitical risks, which have sent the local won into a tailspin," a local currency analyst said.
"Geopolitical risks related to North Korea led market players to shun risky assets although the Korean currency cut earlier losses on stock gains and offshore investors' dollar sales," he added.
The weakening of the won has been steady since Wednesday, when the government reached the conclusion that a North Korean torpedo sank the naval warship Cheonan on March 26, costing 46 sailors their lives.
The won-dollar rate opened at 1,212.90, up 18.80 won from Thursday, before rising to 1,220 ahead of President Lee Myung-bak's address to the nation on the sunken ship.
Following the president's speech, the rate fluctuated around 1,210 won before ending at 1,214.5.
The KOSPI, which began the day 10.35 points lower, stayed around the 1,600 level, but then rose on the back of strong institutional and program buying to close at 1,604.93.
President Lee Myung-bak said in a public address that South Korea will immediately use the right of self-defense if any additional North Korean provocations take place and plans to suspend all inter-Korean exchange programs, except for the joint industrial park in Gaeseong.
원화가치 8개월 만에 최저치
달러에 대한 원화 환율이 한반도를 둘러싼 긴장으로 1,200 원대를 넘어섰다.
달러당 원화 환율은 는 월요일 전장 대비 20.4원이 올라간 1,214.5 원으로 마감했다. 원화가치는 작년 10월 29일 이후 8개 월 만에 최저치다.
이 같은 환율은 또한 작년 9월 16일 1달러 당 1,211.30원을 기록한 이후 처음으로 1,200 원대에 올라섰다.
한 환율전문가는 “외국인 투자자들이 한반도 긴장 고조로 달러를 사재기해 , 원화가치가 급락했다”고 말했다.