(Updates to midday)
SEOUL, May 7 (Reuters) - The South Korean won extended gains
against the dollar on Thursday as foreign investors kept buying
Seoul shares and after strong foreign exchange reserves data.
But investors were wary of possible dollar-buying
intervention by the foreign exchange authorities as a firmer won
KRW= may hurt exports, which have been helping Asia's
fourth-largest economy weather the global downturn.
The local currency was quoted at 1,260.0/1.6 per dollar as of
0235 GMT, compared with Wednesday's domestic close KRW=KFTC of
1,277.0.
"The closer the won gets to the 1,260 level, the more
cautious investors get. The won is likely to rise further if
stocks gain more, but many are looking for dollars around that
level," said a foreign bank dealer.
Seoul shares rose 1.19 percent as foreign investors
bought a net 155.6 billion won worth of stocks on the main
exchange after purchasing a combined net 1.44 trillion won during
the previous four consecutive sessions.
Earlier, central bank data showed South Korea's foreign
exchange reserves rose by $6.14 billion, or 3 percent, to $212.48
billion at the end of April. [ID:nSEO142013]
0235 GMT 0001 GMT prev close
Won KRW= 1,260.0/1.6 1,264.1/5.1 1,277.0
Yen/won JPYKRW=R 12.7685/92 12.8055/65 12.9925/15
KOSPI 1,409.97 1,413.82 1,393.45
(Reporting by Cheon Jong-woo and Lee Soo-jung; Editing by
Jonathan Hopfner)
