By Kim Kyoungwha
Nov. 17 (Bloomberg) -- South Korea's won fell to the lowest in almost three weeks against the dollar after a government report indicated consumer spending is weakening, fanning concern that growth will slump in Asia's fourth-largest economy.
The currency and the Kospi stock index both dropped for a fifth day as overseas investors sold more Korean shares than they bought. The International Monetary Fund may cut its 2009 economic growth forecast for the nation to less than 3 percent from 3.5 percent, Yonhap News reported today, citing President Lee Myung Bak.
``The won will find it difficult to stage a meaningful turnaround given that the economy is cooling fast,'' said Chun Chong Woo, an economist at Standard Chartered First Bank Korea Ltd. in Seoul. ``Risk aversion is still prevalent, damping demand for emerging-market assets.''
The won fell 1.5 percent to 1,421.50 per dollar at 9:47 a.m. in Seoul, according to Seoul Money Brokerage Services Ltd. The currency dropped 34 percent so far this year, the biggest loss among the 10 most-traded Asian currencies outside of Japan.
Sales at the country's three biggest discount chains declined 0.7 percent from a year earlier last month, after tumbling 9.2 percent in September, the Ministry of Knowledge Economy said in Gwacheon today. Department store sales were unchanged, following a 0.3 percent drop.
To contact the reporters on this story: Kim Kyoungwha in Beijing at kkim19@bloomberg.net.
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