South Korea won at 2-week high on oil, exporters; stocks subdued on North Korea

SEOUL: The South Korean won rose to its highest level in two weeks on Thursday as a pickup in global oil prices encouraged investors to seek risky assets, while local exporters were seen selling dollars. 

The local currency was quoted at 1,218.3 per dollar as of 0228 GMT, up 0.8 percent compared to its previous onshore close of 1,227.5. It reached its highest level against the greenback since Feb. 16. 

"We're seeing many dollar-long positions being cut today. Asian currencies are firming against the dollar while foreign demand for South Korean stocks is also spurring demand for the won," said a bank dealer in Seoul. 

The opening level for the won was revised down to 1,227.0 in early trade after a broker mistake on Thursday. 

South Korean stocks touched a new two-month high on offshore demand early in the session but gains were nearly all erased near midday after the South Korean defence ministry said North Korea had fired several projectiles into the sea earlier in the day. 

The won also weakened slightly after news of the latest North Korean provocation. 

The Korea Composite Stock Price Index (KOSPI) inched up 0.2 percent to 1,950.53 points. 

Foreign investors were set to become buyers for a fifth straight session, net purchasing 492.6 billion won ($404.37 million) worth of local shares near midday. 

Shares in shipbuilder  DaewooShipbuilding & Marine Engineering Co Ltd were up 9.2 percent on hopes of a potential Iran project. 

Hotel Shilla rose 5.2 percent after local media reports said it was given the green light by Seoul City to expand its hotel business. 

March futures on three-year treasury bonds fell 0.10 points to trade at 110.18 as views of a rate cut at home were undermined after minutes from February's rate meeting released late on Wednesday showed a majority of the committee members were not planning on changing rates anytime soon. 



(Source : economictimes.indiatimes.com)

Newer Post Older Post