south korean economy down

SEOUL, March 3 (Reuters) - The South Korean won fell over 1 percent to drift around an 11-year low against the dollar early on Tuesday as deepening worries about the global financial sector hit riskier assets including Seoul stocks. The won found some relief however from caution over possible dollar-selling by foreign exchange authorities as they were reported carrying out intervention on Monday to help the currency cut losses. The local unit was quoted at 1,586.1/7.7 per dollar as of 0020 GMT, compared with Monday's domestic close of 1,570.3. It weakened to as soft as 1,593.9, a notch above's Monday's intraday low of 1,594.9, the weakest since March 10, 1998. "The won is expected to weaken past the 1,600 (per dollar) line as it's surrounded by bearish factors, especially worries about the global financial sector, which have pushed local shares below 1,000 points," said an analyst at a local futures firm. Seoul stocks fell 1.44 percent as foreign investors sold a net 11.6 billion won worth of shares in the country's main exchange. Foreigners unloaded a combined net 2.38 trillion won over the previous 15 consecutive sessions, hurting South Korea's balance of payments. Central bank data released earlier showed the country's foreign exchange reserves slid by $200 million in February, the first fall in three months. [ID:nSEO260417] 0020 GMT prev close Won 1,586.1/7.7 1,570.3 Yen/won 16.3200/84 16.1030/82 KOSPI 1,004.19 1,018.81 (Reporting by Cheon Jong-woo; Editing by Jonathan Hopfner)

Thursday, May 20, 2010

Forex report: Euro falls

The question is not whether the €750 billion European loan program is big enough to steady local government bond markets, it’s really a question of what implications the deal creates ahead. The euro is once again on the back foot this morning and has fallen by over four cents from its reaction high reached after the package was announced. An IMF director addressing a conference noted that the plan was no panacea and was really a dose of morphine sufficient to stabilize the patient. Investors now fear the consequences of the stability measures will leave European monetary policy in neutral gear while disabling fiscal policy for an extended period. Such a policy mix draws attention to a possible growth rift between the U.S. and the Eurozone and at its worst, would conspire to dramatically slow the global economy
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