(From Economictimes.Indiatimes.Com)
SEOUL:The South Korean won rose slightly against the dollar on Friday as foreign investors turned net buyers of local stocks amid easing worries about Ireland's debt crisis and on exporters' demand for settlements.
The won, however, gave up most of its earlier gains as Vice Finance Minister Yim Jong-yong said the country planned to prepare further capital measures by the end of this year and investors covered dollar-short positions. The local currency is expected to stay in a range around 1,130 per dollar on growing caution over the country's additional steps to reduce sharp swings in capital flows, analysts and dealers said. "Even though yesterday's announcement was nothing new, nobody knows what kind of cards the government has on the table. So, nobody dares to make big bets either way," said June Park, an economist at Woori Investment & Securities. "If the additional steps are in line with market expectations, the won will rise more. But if not, that will hamper the won," Park added. On Thursday, the finance ministry said it was supporting legislative efforts to remove a withholding tax exemption for foreign bond investors and would help related bills pass parliament as soon as possible. Yim said the government would unveil additional measures on capital flows if necessary, which might include a bank levy and limits on forex forward positions held by banks.
The won ended domestic trade at 1,133.6 per dollar, compared with Thursday's domestic close of 1,134.9. It lost 0.5 percent versus the U.S. dollar for the week. Earlier, the South Korean unit strengthened to as firm as 1,128.0. "A firm euro provided the won with strong support, but importers are quite active below the dollar/won level of 1,130," said a foreign bank dealer. Foreign investors turned to net buyers of local stocks purchasing a net 190.2 billion won ($168.3 million) on the main exchange with the benchmark KOSPI up 0.68 percent. They sold a combined net 460.8 billion won in the previous two sessions.
The won ended domestic trade at 1,133.6 per dollar, compared with Thursday's domestic close of 1,134.9. It lost 0.5 percent versus the U.S. dollar for the week. Earlier, the South Korean unit strengthened to as firm as 1,128.0. "A firm euro provided the won with strong support, but importers are quite active below the dollar/won level of 1,130," said a foreign bank dealer. Foreign investors turned to net buyers of local stocks purchasing a net 190.2 billion won ($168.3 million) on the main exchange with the benchmark KOSPI up 0.68 percent. They sold a combined net 460.8 billion won in the previous two sessions.
Source link: http://economictimes.indiatimes.com/markets/forex/SKorea-won-edges-up-on-euro-stocks-controls-eyed/articleshow/6953275.cms
