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Seoul: Won rebounds as US dollar weakens; stocks climb

Friday, October 14, 2016 - 10:56
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The South Korean won rebounded early on Friday, paring losses from the past three days, as the US dollar weakened after its recent global rally, and supported by foreign investors' eager buying of Seoul stocks.

[SEOUL] The South Korean won rebounded early on Friday, paring losses from the past three days, as the US dollar weakened after its recent global rally, and supported by foreign investors' eager buying of Seoul stocks.

The won was quoted at 1,132.0 as of 0224 GMT, versus its previous close at 1,135.9.

"The won fell a lot during past three days, and therefore seems to be adjusting the level today," said Jeong My Young, a foreign exchange analyst at Samsung Futures.

"However, in the long term, the won will continue its downward movement as forecasts of US Federal Reserve's December rate hike are still very dominant," added Mr Jeong.

South Korean shares also rose on stock purchases from domestic institutions and offshore investors.

The Korea Composite Stock Price Index (Kospi) was up 0.5 per cent at 2,025.99 points.

Offshore investors were expected to be net buyers, purchasing a net 43.3 billion Korean won (S$53.76 million) worth of Kospi shares while local institutions bought a net 28.3 billion won worth near mid-session.

Shares of Samsung Electronics Co Ltd gained 0.6 per cent on Friday morning after it said it expected to take a greater profit hit from the demise of its fire-prone Galaxy Note 7 smartphones.

Doosan Heavy Industries & Construction Co Ltd rose more than 3 per cent after winning 952 billion won order to build power generation facility in the Philippines from Redondo Peninsula Energy Corporation.

Decliners outnumbered advancers 434 to 337.

December futures on three-year treasury bonds shed 0.05 point to 110.66.

REUTERS

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