Korean Won Trades Near Two-Month Low as Global Slump Deepens

By Kim Kyoungwha

Feb. 3 (Bloomberg) -- South Korea’s won traded near the weakest in almost two months on concern a deepening global economic slump will hurt exports.

The Korean currency, Asia’s worst performer last year, briefly fell beyond 1,400 per dollar for the first time since Dec. 10 after U.S. reports showed manufacturing shrank and consumer spending slid for an unprecedented sixth month.

“Offshore players, unnerved by gloomy data, are pushing the won lower,” said Jo Hyun Suk, a currency dealer with Korea Exchange Bank in Seoul. “Still, dollar sales emerge near 1,400 which is perceived to be its peak for the time being.”

The won fell 0.1 percent to 1,391.50 per dollar as of 9:43 a.m. in Seoul, according to Seoul Money Brokerage Services Ltd. It earlier declined to as low as 1,404.55.

The currency pared losses as Korea Exchange data showed global funds bought more Korean shares than they sold for a fifth straight day, the longest run of net purchases in a month.

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