Reuters logo
S.Korea won firms on exporter demand, stocks inch up
April 28, 2014 / 3:10 AM / in 3 years

S.Korea won firms on exporter demand, stocks inch up

* Won likely to be capped on intervention concerns - dealers
    * Local stocks gain traction after 3-day skid

    SEOUL, April 28 (Reuters) - The South Korean won rose
against the dollar on Monday morning, buoyed by demand from
exporters for month-end settlements and as escalating tensions
in Ukraine weighed on the greenback.
    The local currency was quoted at 1,038.0 against
the dollar as of 0245 GMT, up 0.3 percent from Friday's close of
onshore trade at 1,041.5.
    "The dollar selling by exporters isn't as robust, but the
won appears to be backed by offshore dollar-short positions," a
foreign bank dealer said.
    Pro-Russian rebels paraded European monitors they are
holding in eastern Ukraine on Sunday, freeing one but saying
they had no plans to release another seven as the United States
and Europe prepared new sanctions against Moscow. 
    Dealers added that further gains in the won would likely be
capped in the afternoon due to caution over potential
intervention by Seoul to curb the pace of the currency's
appreciation.
    Meanwhile, the Korea Composite Stock Price Index (KOSPI)
 was up 0.1 percent at 1,974.58 points as of 0245 GMT
after three days of declines.
    "Global stocks as a whole have undergone a correction due to
the Ukraine tensions and anxiety over the U.S. Federal Reserve
meeting. But considering the causes for correction have been
exposed for some time, the local market is showing some
resilience," said Lim Dong-rak, an analyst at Hanyang
Securities.
    Fed policymakers will meet on Tuesday and Wednesday this
week. 
    State-run utilities Korea Electric Power Corp 
and Korea Gas Corp rose 1.9 percent and 1 percent,
respectively, as investors sought defensive plays.
    Foreign investors sold a net 24 billion won ($23 million)
worth of KOSPI shares by midsession. They offloaded technology
names like Naver Corp and SK Hynix Inc,
which dropped 1.6 percent and 1.2 percent, respectively.
    
                       0245 GMT    Prev close
 Dollar/won            1,038.0       1,041.5
 Yen/won           10.1605/685       10.1904
 *KTB futures           105.78        105.77
 KOSPI                1,974.58      1,971.66
 * Front-month futures on three-year treasury bonds
($1 = 1041.5000 Korean Won)

 (Reporting by Jungmin Jang; Additional reporting by KyoungHo
Lee; Editing by Chris Gallagher)

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below