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S.Korea won slips as USD strengthens on Dudley's comments, shares flat
June 20, 2017 / 3:01 AM / in 4 months

S.Korea won slips as USD strengthens on Dudley's comments, shares flat

    * Won falls to six-week low as USD strengthens on Dudley
comments
    * Won may weaken further before S.Korea-U.S. summit -
analyst

    SEOUL, June 20 (Reuters) - The South Korean won       
slipped to a six-week low early on Tuesday, as the dollar
bounced in the wake of hawkish comments from a Federal Reserve
official.
    The won            was quoted at 1,137.1 against the dollar
as of 0230 GMT, down 0.39 percent versus Monday's close of
1,132.7. The currency briefly touched 1,138.5, the weakest since
April 21.
    "Comments from a New York Fed official reinforced views that
the Fed will raise interest rates as planned. Uncertainties are
also high ahead of S.Korea-U.S. summit, as many expect the
meeting to set a direction in North Korea policies," Kim Doo-un,
a currency analyst at Hana Financial Investment said in Seoul.
    The dollar and Treasury yields moved higher after New York
Federal Reserve President William Dudley said inflation was a
bit low but should rebound alongside wages as the labour market
continues to improve, reinforcing expectations the U.S. central
bank will continue on its path of tightening monetary policy.
            
    Adding to the won's weakness this week is the market's
cautious mood before South Korea President Moon Jae-in's visit
to Washington later this month, Kim said, when the two leaders
are expected to discuss policy responses to North Korea's recent
missile launches. 
    South Korean shares were flat with the Korea Composite Stock
Price Index (KOSPI)         off 0.05 percent at 2,369.60 points.
    Market heavyweight Samsung Electronics             was up
2.15 percent at 2,378,000 won. It earlier hit a record high of
2,385,000 won on expectations the world's top chip maker will
post an all-time high operating profit in the second quarter. 
    Smaller rival SK Hynix             was up 3.66 percent at
65,100 won. 
    Decliners outnumbered advancers 617 to 197.  
    June futures on three-year treasury bonds         shed 0.01
points to 109.57. 
    
                       0230 GMT    Prev close
 Dollar/won             1,137.1       1,132.7
 Yen/won                10.1800       10.1826
 *KTB futures            109.57        109.58
 KOSPI                 2,369.60      2,370.90
 * Front-month futures on three-year treasury bonds

 (Reporting by Cynthia Kim; Editing by Jacqueline Wong)
  

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