SEOUL, Dec 4: The South Korean won held steady through midday on Wednesday, showing some resilience in the face of a share selloff around the world on fears of an impending reduction in the U.S. Federal Reserve’s stimulus.
The won was drew support after losses on Tuesday as the yen halted a steep decline and exporters sold dollars. The country’s exporters are in fierce competition with the Japanese and the won is strongly influenced by the yen.
The won was quoted at 1,061.1 per dollar at 0230 GMT, just above Tuesday’s domestic close of 1,061.2.
‘Stocks and currencies (of the emerging economies) are under pressure ahead of the U.S. Data release but the won is finding some support from the steady dollar sales by exporters,’ said a domestic bank dealer.
Traders shrugged off remarks made late on Tuesday by lawmakers in Seoul that North Korean leader Kim Jong Un was believed to have dismissed a powerful uncle, an important figure in his rise to power, from his posts.
Seoul shares fell around 1 percent with foreign investors offloading a net 156 billion won worth of South Korean shares.
In bond futures, the December 3-year treasury bond contract gained 0.06 points to 105.37 as the share selloff lifted the save-haven appeal of bonds. Foreign investors were net buyers for 460 billion won worth.
(agencies)
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