Won-dollar Exchange Rate Inches down, Stock Prices Inches up

The won-to-dollar exchange rate, which plunged Monday due to a weak dollar and strong yen, has inched down again Tuesday.

However, stock prices, which stumbled Monday due to the shockwave from plunging exchange rates, inched up Tuesday, settling the unrest of the local financial market.

The won-to-dollar exchange rate lost 1.1 won to close at 1150.1 won from the previous day.

The exchange rate continued to nosedive for a fourth consecutive day since Sep.18, but it edged down compared to the day before.

Finance and Economy Minister Kim Jin-pyo, who left for Dubai, the United Arab Emirates, to attend the annual meeting of the International Monetary Fund, told reporters Tuesday, “We need to warn against speculative forces and they should be punished no matter what,” expressing a strong will to defend the exchange rate. “Steps will be taken to combat foreign exchange speculators who are distorting the market,” he said. “Amid the economic downturn, the current exchange rates do not properly reflect the local market situation.”

The Korea Composite Stock Price Index (KOSPI), the barometer of the main Korea Stock Exchange, rose 3.95 points, or 0.55 percent, to 718.84. The over-the-counter KOSDAQ index closed at 46.35, up 0.32 point, or 0.7 percent for the first time in four days. Stock prices plummeted more than 12 points in the morning trading session as foreign investors sold a large amount of stocks, threatening the 700-level. However, as there were an increasing number of purchasing orders, the KOSPI regained momentum.

Meanwhile, the yen-to-dollar exchange rates remained steady at 112 yen for a dollar in the East Asian Foreign Exchange.