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Seoul: Won falls to 3-yr low on Fed rate hike talk; shares flat
[SEOUL] The South Korean won fell to a fresh three-year low on Wednesday, mirroring the dollar's renewed strength after a US Federal Reserve regional president argued for an interest rate hike in September.
Local dealers suspected there were "smoothing" operations by Korean financial authorities to trim the won's losses after it fell sharply against the dollar.
The won closed down 0.7 per cent to 1,173.6 on the dollar after touching a morning low of 1,175.1, the weakest since June 8, 2012.
The Korea Composite Stock Price Index (KOSPI) closed nearly flat at 2,029.76 points, barely changed from the previous close at 2,027.99.