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ChuckECheese
Joined: 20 Jul 2006
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 Posted: Sun Oct 08, 2006 9:30 pm Post subject: Korean Won and Stock Market are Slipping |
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The news of NK's nuke test is causing the Won and KOSPI to slip rapidly.
Won is 966.X per $1 now and going up.
We should exchange our Korean Won to US$ while the rate is still reasonably low. |
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Wangja
Joined: 17 May 2004
Location: Seoul, Yongsan
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| Posted: Sun Oct 08, 2006 9:42 pm Post subject: |
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Easing back a bit ...
Buy Sell
USD 979.34 945.66 |
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Junior
Joined: 18 Nov 2005
Location: the eye
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| Posted: Sun Oct 08, 2006 10:37 pm Post subject: |
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South Korean Stocks Plunge After Reported North Korea Nuclear Test
Monday, October 09, 2006
SEOUL, South Korea � South Korean stocks plunged Monday following North Korea's announcement that it conducted a nuclear test.
The benchmark Korea Composite Stock Price Index, or Kospi, fell as low as 1,303.62, or 3.6 percent after North Korea's official Korean Central News Agency said the underground test was performed successfully.
The Kospi was trading 2.6 percent lower at 1,316.39 at 1:10 p.m. (0350 GMT) in Seoul.
Markets in South Korea, the world's 10th-largest economy, have long been considered vulnerable to potential geopolitical risks emanating from the North. The two countries, which fought the 1950-53 Korean War, are divided by the world's most heavily armed border.
North Korea said last week that it planned to carry out a test. Reports of Monday's test have yet to be independently confirmed.
An official at South Korea's seismic monitoring center said a magnitude 3.6 tremor felt at the time of the alleged test wasn't a natural occurrence. The official spoke to The Associated Press on condition his name not be used, because he wasn't authorized to provide sensitive information to the media.
http://www.foxnews.com/story/0,2933,218720,00.html |
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ChuckECheese
Joined: 20 Jul 2006
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| Posted: Sun Oct 08, 2006 11:32 pm Post subject: |
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I just went to my bank to take out all the money from my foreign (dollar) currency account. I also took out all my Korean Won from my regular account and exchanged it into US$ (in cash).
It's just reassuring that I have the hard and cold cash if and when situation sours any more. |
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Milwaukiedave
Joined: 02 Oct 2004
Location: Goseong
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| Posted: Mon Oct 09, 2006 3:09 am Post subject: |
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Emptying your account and buying dollars is a real mistake. The only thing your going to do by doing that is drive the exchange rate up.
Stupid, stupid, stupid |
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gang ah jee
Joined: 14 Jan 2003
Location: city of paper
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| Posted: Mon Oct 09, 2006 3:16 am Post subject: |
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| Milwaukiedave wrote: |
| Emptying your account and buying dollars is a real mistake. The only thing your going to do by doing that is drive the exchange rate up. |
Looks like you've got the prisoner's dilemma on your hands there, Milwaukeedave. |
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huffdaddy
Joined: 25 Nov 2005
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| Posted: Mon Oct 09, 2006 3:18 am Post subject: |
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| Milwaukiedave wrote: |
Emptying your account and buying dollars is a real mistake. The only thing your going to do by doing that is drive the exchange rate up.
Stupid, stupid, stupid |
Yea, like one person is going to move the market. A CME Won futures contract is for W125,000,000. And that's nothing. |
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Milwaukiedave
Joined: 02 Oct 2004
Location: Goseong
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| Posted: Mon Oct 09, 2006 3:32 am Post subject: |
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| huffdaddy wrote: |
| Milwaukiedave wrote: |
Emptying your account and buying dollars is a real mistake. The only thing your going to do by doing that is drive the exchange rate up.
Stupid, stupid, stupid |
Yea, like one person is going to move the market. A CME Won futures contract is for W125,000,000. And that's nothing. |
No, but if enough people do it, sure it's going to affect the market. Get real! |
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huffdaddy
Joined: 25 Nov 2005
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| Posted: Mon Oct 09, 2006 4:03 am Post subject: |
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| Milwaukiedave wrote: |
| huffdaddy wrote: |
Yea, like one person is going to move the market. A CME Won futures contract is for W125,000,000. And that's nothing. |
No, but if enough people do it, sure it's going to affect the market. Get real! |
If enough people with enough money do it, sure. FTs don't have enough money. For example, the CME contract mentioned above requires a $2,200 performance bond. With $100,000, a hedge fund could trade 45 contracts worth W5,625,000,000, or roughly $5.8 million. Which is peanuts in the world of hedge funds. |
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Nambucaveman
Joined: 03 Aug 2006
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| Posted: Mon Oct 09, 2006 4:07 am Post subject: |
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huffdaddy,
I hope your right. Certainly I'm not going to run to the bank to take money out. I've looked at the chart on the history of the won and it was about 1200 to the dollar when I arrive. It's going to suck if gets that bad again. |
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huffdaddy
Joined: 25 Nov 2005
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| Posted: Mon Oct 09, 2006 4:34 am Post subject: |
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| Nambucaveman wrote: |
huffdaddy,
I hope your right. |
Oh yeah, lay it all on me.  For the record, I've always advocated keeping a diversified currency potfolio.
Seriously, usually the market overreacts to bad news and will readjust once the bad news has time to settle. On the other hand, some blame hedge funds for the won's rise. So I suppose what the hedge funds bring, the hedge funds could take away.
http://times.hankooki.com/lpage/200503/kt2005031119225710160.htm
We'll see what the US markets do to the won. If they murder it, you should still be able to bail tomorrow, as rates are supposed to be based on the previous day's close (as of 3pm Korea time). |
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Rteacher
Joined: 23 May 2005
Location: Western MA, USA
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| Posted: Mon Oct 09, 2006 5:27 am Post subject: |
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My gut feeling is that the won-dollar ratio won't change that much because the threat also implicates the U.S. to a large degree. It would probably affect the won-Canadian dollar exchange rate more...
I could be wrong, though (maybe I just ate too much...) We should get a good indication over the next couple days... |
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huffdaddy
Joined: 25 Nov 2005
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| Posted: Mon Oct 09, 2006 6:15 am Post subject: |
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| The USD-KRW exchange rate is steady on the US markets. |
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hogwonguy1979
Joined: 22 Dec 2003
Location: the racoon den
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| Posted: Mon Oct 09, 2006 6:25 am Post subject: |
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not much is going to happen unless there is a serious threat of military action here.
I'm willing to bet that it goes back the other way within a couple of days
I'm not worried, besides when I came back in 2002 it was over 1300/dollar. from 950 to 960 is nothing |
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Adventurer
Joined: 28 Jan 2006
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| Posted: Mon Oct 09, 2006 8:03 am Post subject: |
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| hogwonguy1979 wrote: |
not much is going to happen unless there is a serious threat of military action here.
I'm willing to bet that it goes back the other way within a couple of days
I'm not worried, besides when I came back in 2002 it was over 1300/dollar. from 950 to 960 is nothing |
Well, the South Korean government part start coughing up 70% of the budget for American soldiers like the Japanese do. If the U.S. troops were not here, Kim Jung Il would possibly invade. I am not alarmed at this moment. However, the only way to respond to nuclear weapons is with nuclear weapons. Hopefully, the world will go beyond nukes and realize this kind of envy is quite misplaced and does not advance anyone in any real way. I think the Korean won will bounce back in due time.
It is kind of interesting that Iraq was invaded, when people were not sure about the WMD and Saddam never used chemical weapons even in Desert Storm on Americans, and people knew North Korea's bugs bunny was able to build a bomb relatively quickly, but one had Iraq invaded instead. |
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