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Seoul: Won pressured by Chinese yuan's fall, stocks down
[SEOUL] The South Korean won eased on Tuesday morning, pressured by the Chinese yuan's sharp fall against the dollar late in the previous day, though foreign buying of Seoul stocks could limit any further losses in the won.
The won was quoted at 1,141.1 as of 0157 GMT, down 0.4 per cent from Monday's close at 1,136.4.
China's yuan slipped below the psychologically important level of 6.7 to the dollar for the first time in more than five years on Monday, after state bank support for the currency tapered off in late trade on Monday.
The yuan steadied in Tuesday's morning trade.
"Though the yuan's movement for today will be important in the market, it is unlikely that the won will fall further since foreigners look like they'll be turning stock buyers today," said Jeon Seung-ji, a foreign exchange analyst at Samsung Futures.
South Korean shares edged down after rising for seven consecutive days.
The Korea Composite Stock Price Index (Kospi) was down 0.4 per cent at 2,013.45 points.
Offshore investors turned to buyers after starting off as net sellers at opening bell, and are set to continue their buying spree for a ninth straight session. They bought a net 32.5 billion Korean won (S$38.5 million) worth of Kospi shares near mid-session.
Decliners outnumbered advancers 474 to 276.
Shares of oil-related firms slumped with SK Innovation Co Ltd losing 2.0 per cent and S-Oil Corp down 1.3 per cent.
September futures on three-year treasury bonds gained 0.05 point to 111.13.