The South Korean won dipped against the dollar on Thursday, as Seoul shares fell on higher oil prices and in the absence of a repeat of the previous day’s intervention to defend the local currency.

The won found some relief from exporter demand and investor wariness of a possible fresh round of dollar sales by the authorities.

The local currency was quoted at 1,051.1/1.5 per dollar as of 0255 GMT, compared to Wednesday’s domestic close of 1,049.. It rose to as high as 1,046.4.

“The won is expected to gradually fall further as the authorities are more likely to carry out smoothing operations than any massive intervention,” said a local bank dealer.

The foreign exchange authorities were estimated to have sold up to $800 million to prop up the won on Wednesday as it hit a seven-week low, traders said.

South Korean shares <.KS11> lost 1.49 percent while foreign investors sold a net 25.4 billion won worth of stocks in the country’s main exchange.

Foreigners unloaded a combined net 800 billion won worth of Seoul shares during the previous two consecutive sessions.

Oil prices rose to over $116 a barrel on supply worries after Russia expressed its displeasure over a U.S.-Poland missile shield pact.

0255 GMT 0017 GMT prev close

Won 1,051.1/1.5 1,048.1/8.8 1,049.3

Yen/won 9.5850/13 9.5675/20 9.5512/56

KOSPI 1,517.79 1,533.23 1,540.71

Source: http://www.afxnews.com

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