S.Korean won steady, import deals trim early gains

(Updates to midday)

SEOUL, April 17 (Reuters) - The South Korean won edged up
against the dollar on Thursday amid broad weakness in the U.S.
currency, but it gave up some earlier gains on import deals and
dividend-linked dollar demand.

The won KRW= was quoted at 988.6/9.3 per dollar at 0401
GMT, compared with the previous closing bid of 989.25.

The dollar held near an all-time low against th euro on
Thursday after a sharp fall in housing starts reinforced
expectations for another U.S. interest rate cut.

Some banks sold the U.S. unit to clear their dollar long
positions, but the offers were absorbed by demand anticipating
refiner S-Oil's (010950.KS) dividend payments to foreigners.

"The won gained earlier as stock markets rose and offshore
players sold dollars. But it turned out dollar demand has been
pretty solid," said a dealer at a domestic bank.

The benchmark South Korean stock index .KS11 rose 1.07
percent on Thursday, with foreigners buying a net 119 billion won
in shares on the main board.

0401 GMT 0105 GMT prev close
Won KRW= 988.6/9.3 986.7/7.4 989.25
Yen/won JPYKRW=R 9.7102/190 9.6782/889 9.7176
KOSPI .KS11 1,777.45 1,779.28 1,758.56
(Reporting by Rhee So-eui and Lee Kyoung-ho; Editing by Anne
Marie Roantree)