Bloomberg News

South Korean Won Pares Loss as Exporters Convert Overseas Income

October 04, 2011

Oct. 4 (Bloomberg) -- South Korea’s won pared losses on speculation exporters were taking advantage of an earlier drop to a 14-month low to convert overseas income at a more favorable exchange rate.

The won was 1.4 percent lower than its closing price on Sept. 30 at 1,194.50 against the U.S. currency as of 2:10 p.m. in Seoul, according to data compiled by Bloomberg. It declined as much as 2.5 percent to 1,208.25, the weakest level since July last year. South Korea’s financial markets were shut yesterday for a holiday.

The currency fell as investors sought safety in the greenback on concern European officials will fail to stem the euro-region debt crisis. Greece passed austerity measures yesterday that will cut its 2012 budget deficit to 6.8 percent of gross domestic product, short of the 6.5 percent goal previously agreed to secure financial aid.

“The won is trimming losses in the afternoon as exporters sell dollars,” said Lee Jung Ha, a senior currency dealer with Korea Development Bank in Seoul. There’s speculation the government intervened in the morning as the won weakened below 1,200 per dollar, he said.

--Editors: Simon Harvey, Ven Ram

To contact the reporter on this story: Jiyeun Lee in Seoul at jlee1029@bloomberg.net

To contact the editor responsible for this story: Sandy Hendry at shendry@bloomberg.net


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