South Korean won hits new 2-1/2-year low

The South Korean won touched a more than two-and-a-half-year low against the dollar on Friday, as weaker domestic stocks and record-breaking oil prices caused importers to dump the local currency. But the won recovered some of the early loss, helped by exporter demand for settlements and as foreign investors bought local shares, dealers said.
The local currency is expected to remain under pressure due to higher oil prices, which will hurt South Korea's current account, but it may rebound somewhat next week if investors see its recent fall as excessive, analysts said.
"The won has a supporting level at around 1,060 per dollar. Exporter deals and profit-taking (from the dollar's recent gain) will support it next week," said Jeon Seung-ji, an analyst at Samsung Futures Inc. "But bearish factors such as higher oil prices still remain," she added. The South Korean unit was quoted at 1,044.5/5.2 per dollar after falling to as low as 1,052.5, compared with its previous closing bid of 1,040.25.