Seoul: Won falls sharply, stocks dip

[SEOUL] The South Korean won fell nearly 1 per cent on Friday, giving up gains from earlier in the week even as the dollar wallowed at close to twe-month lows.

The won stood at 1,116.7 as of 0217 GMT, compared to Thursday's close of 1,107.2.

"There is no special reason for the won's sharp fall. It seems like the investors are deciding to sell the currency just because they view the won isn't likeley to strengthen anymore,"said Jung Sung-yoon, a foreign exchange analyst at Hyundai Futures.

On a weekly basis, the won was set to decline 1.2 per cent, snapping three consecutive weeks of gains.

South Korean shares eased, with the Korea Composite Stock Price Index (Kospi) at 2,050.37 points, down 0.2 per cent.

Any further decline later in the session could threaten to end local equities' three-week winning streak.

Offshore investors were poised to be net sellers but the amount was modest at 3.5 billion won (S$4.24 million) of Kospi shares.

The sub-index for electric and electronics rose 1.1 per cent. Samsung Electronics Co Ltd continued its rally while trading up 1.2 per cent. LG Display Co Ltd gained 3.4 per cent.

Decliners outnumbered advancers 486 to 283.

September futures on three-year treasury bonds were unchaged at 111.08.

REUTERS