SEOUL, Sept 26 (Reuters) - The South Korean won ended the local session lower against the dollar on Friday, dragged down by the lingering uncertainty surrounding a proposed $700 billion lifeline for the U.S. financial sector.
The cost of dollar funding in the swap market fell after the South Korean finance ministry pledged to inject at least $10 billion to ease the dollar squeeze, but worries about the U.S. financial sector outweighed on the spot market, dealers said.
The won ended the local session at 1,160.6 per dollar, down from Thursday's domestic close of 1,158.2.
For the week, the South Korean currency lost 1.8 percent to the dollar.
Finance Minister Kang Man-soo issued a renewed pledge to help ease dollar funding shortages, and another ministry official said the authorities would inject at least $10 billion into the swap market over the coming weeks.
The remarks helped bring down the cost of dollar funding, with the cost of one-month funding dropping to about 1.5 won on the dollar from about 3.5 won in the morning and compared with as high as 10.0 won earlier this week, dealers said.
The persisting concern about the fate of the U.S. bailout plan also hit the Seoul stock market, which ended down 1.7 percent on the day. Foreign investors were net sellers of 166 billion won worth of local shares.
0600 GMT 0300 GMT prev close
Won 1,160.6/1.6 1,158.2/9.0 1,158.2
Yen/won 10.9791/17 10.9347/42 10.9411/09
KOSPI 1,476.33 1,478.19 1,501.63
(Reporting by Yoo Choonsik; Editing by Ken Wills)
((choonsik.yoo@thomsonreuters.com; +82 2 3704 5580; Reuters Messaging: choonsik.yoo.reuters.com@reuters.net)) . lw COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
The cost of dollar funding in the swap market fell after the South Korean finance ministry pledged to inject at least $10 billion to ease the dollar squeeze, but worries about the U.S. financial sector outweighed on the spot market, dealers said.
The won ended the local session at 1,160.6 per dollar, down from Thursday's domestic close of 1,158.2.
For the week, the South Korean currency lost 1.8 percent to the dollar.
Finance Minister Kang Man-soo issued a renewed pledge to help ease dollar funding shortages, and another ministry official said the authorities would inject at least $10 billion into the swap market over the coming weeks.
The remarks helped bring down the cost of dollar funding, with the cost of one-month funding dropping to about 1.5 won on the dollar from about 3.5 won in the morning and compared with as high as 10.0 won earlier this week, dealers said.
The persisting concern about the fate of the U.S. bailout plan also hit the Seoul stock market, which ended down 1.7 percent on the day. Foreign investors were net sellers of 166 billion won worth of local shares.
0600 GMT 0300 GMT prev close
Won 1,160.6/1.6 1,158.2/9.0 1,158.2
Yen/won 10.9791/17 10.9347/42 10.9411/09
KOSPI 1,476.33 1,478.19 1,501.63
(Reporting by Yoo Choonsik; Editing by Ken Wills)
((choonsik.yoo@thomsonreuters.com; +82 2 3704 5580; Reuters Messaging: choonsik.yoo.reuters.com@reuters.net)) . lw COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
© 2008 AFX News
