S.Korea's currency surges versus U.S. dollar on dovish Fed's meeting

South Korea's currency on Thursday surged versus the U.S. dollar, posting this year's highest, as the U.S. Federal Reserve indicated its more gradual rate hike than expected amid uncertainties about the global economy and financial markets.

The won/dollar exchange rate finished at 1,173.3 per dollar. It marked the South Korean currency's highest value to the dollar since Dec. 30 last year.

The Fed kept interest rates unchanged and forecast it will gradually raise interest rates than it expected last year. Lower expectations for the Fed's rate hike resulted in the weakness of the greenback.

Global oil prices rebounded overnight, with Asian shares showing a relief rally thanks to the Fed's dovish stance.

Stocks in South Korea rallied as well. The benchmark Kospi index rose 13.09 points, or 0.66 percent, to 1,987.99 at the close. Trading volume stood at 282.24 million shares worth 4.67 trillion won (3.98 billion U.S. dollars).

Market watchers said global stocks may make a relief rally for the time being due to ample liquidity as the Fed pledged a gradual rate hike and central banks in Europe and Japan adopted negative interest rates.

Foreigners remained net buyers for the sixth consecutive session by raising local stock holdings by 421 billion won. Financial institutions and retail investors sold shares worth more than 400 billion won.

Large-cap shares ended mixed. Market bellwether Samsung Electronics added 0.6 percent, and top life insurer Samsung Life Insurance gained 0.4 percent. The state-run power supplier Korea Electric Power Corp. lost 0.8 percent, and the most-used search engine Naver declined 0.6 percent. Enditem