You are here

Seoul: Won steps up to over 1-year high on strong risk sentiment

38839271 - 24_06_2016 - CHINA-STOCKS.jpg

[SEOUL] The South Korean won was poised to extend its gains for a fifth day and lingered around a near 15-month intraday high early on Wednesday as a sagging dollar and the rise in Wall Street boosted global risk demand.

The won stood at 1,098.4 as of 0150 GMT, its highest since June 22, 2015. It was up 0.7 per cent compared with Tuesday's close of 1,106.1.

"Not only are the US dollar and stocks affecting the won, but S&P's credit rating upgrade for South Korea from Monday is still having a positive impact on the won's strength," said Park Yuna, a foreign exchange analyst at Dongbu Securities.

Ms Park added it was possible for the currency to reach past the 1,080 won level because there were no specific market factors that could hinder the currency's upward trend.

South Korean shares, meanwhile, fluctuated in and out of positive territory after rising during the past four sessions.

The Korea Composite Stock Price Index (Kospi) was down 0.1 per cent at 2,042.24 points.

Offshore investors were poised to be buyers, purchasing a net 82.1 billion Korean won (S$99 million) worth of Kospi shares near mid-session.

The electric and electronic sub-index dropped 1.5 per cent with chipmaker SK Hynix Inc down 3.1 per cent and scereenmaker LG Display Co Ltd down 2.7 per cent.

Decliners outnumbered advancers 481 to 381.

September futures on three-year treasury bonds gained 0.07 point to 111.11.