The South Korean won fell against the dollar on Friday after data showing the country posted a trade deficit in July and as local shares slid on disappointing U.S. economic data.

But investors remained wary of possible dollar-selling intervention by South Korea’s foreign exchange authorities, limiting falls in the won.

They were on Thursday estimated to have sold some $1 billion to lift the won, traders said.

The local currency was quoted at 1,014.3/4.7 per dollar as of 0305 GMT, compared to Thursday’s domestic close of 1,012.1.

“The won is staying under pressure from sustained dollar demand although everybody is keeping an eye on the authorities,” said a foreign bank dealer.

South Korea’s export growth in July hit its highest in over four years on strong demand from emerging countries, but imports also surged by their fastest rate in more than eight years, producing a $1.62 billion trade deficit, data showed.

Seoul shares fell 1.67 percent as foreign investors sold a net 47.4 billion won worth of stocks in the country’s main exchange.

Investors are awaiting July’s inflation due at 0430 GMT. The country’s annual consumer price inflation likely hit a fresh 10-year high in July on higher oil and raw material prices.

0305 GMT 0010 GMT prev close

Won <KRW=> 1,014.3/4.7 1,012.7/3.2 1,012.1

Yen/won <JPYKRW=R> 9.4065/45 9.4057/94 9.3685/58

KOSPI <.KS11> 1,567.98 1,579.01 1,594.67

Source: http://www.afxnews.com

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