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Seoul: Won falls with stocks before BOK's rate decision

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[SEOUL] South Korea's won and stocks fell before the central bank's rate decision, with three of 18 economists surveyed forecasting a cut and the rest no change.

The currency snapped a two-day gain and headed for a second weekly loss, its worst performance since February.

The Nikkei reported that shipments of iPhone chips will likely shrink for the rest of the year, clouding the outlook for South Korean semiconductor manufacturers such as Samsung Electronics Co.

The won dropped 0.7 per cent to 1,171.10 per US dollar as of 9:42 am in Seoul, taking its decline for the week to 1.4 per cent, according to prices from local banks compiled by Bloomberg.

The 10-year bond yield was steady at 1.76 per cent and that on the three year held at 1.43 per cent, two basis points above Monday's all-time low.

The Kospi stock index fell 0.4 per cent.

BLOOMBERG