Korean Won Rises From Decade-Low as Stocks Gain After Rate Cut

By Kim Kyoungwha

Oct. 9 (Bloomberg) -- The South Korean won rose from a decade-low after the central bank's surprise cut in interest rates helped boost local stocks.

The won climbed 0.8 percent to 1,383.55 versus the dollar as of 1:35 p.m. local time, according to Seoul Money Brokerage Services Ltd. It earlier slumped as much as 6.1 percent to 1,485.55, the weakest level since April 1998.

The Bank of Korea lowered the seven-day repurchase rate for the first time in four years, reducing it by a quarter-percentage point to 5 percent. The Kospi stock index jumped 1.7 percent, the biggest gain in almost three weeks.

To contact the reporters on this story: Kim Kyoungwha in Beijing at kkim19@bloomberg.net;