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S.Korea won drops to a 5-wk low as solid US data lifts dlr
June 16, 2017 / 3:01 AM / 2 months ago

S.Korea won drops to a 5-wk low as solid US data lifts dlr

    * Won volatile after Fed rate increase
    * Strong US data supports dollar
    * Korean stocks down slightly, foreigners net sellers

    SEOUL, June 16 (Reuters) - The South Korean won       
slipped to a five-week low early on Friday as the dollar bounced
in the wake of strong U.S. economic data, backing the Federal
Reserve's interest rate increase this week and its signal to
keep tightening policy. 
    The won            was quoted at 1,130.4 against the dollar
as of 0225 GMT, down 0.6 percent versus Thursday's close of
1,124.1. The currency briefly touched 1,131.3, the weakest
intraday level since May 11.
    "Though the Fed seems really confident about U.S. economic
growth, market players are holding mixed views on how long this
growth phase would last, causing more volatility in the
currency," said Jung Sung-yoon, an analyst at Hyundai Futures.
    Jung expects currency volatility to last for a while. The
won was poised to end the week down, a third straight declining
week. 
    Dollar bulls were cheered by Thursday's run of upbeat U.S.
economic data, including initial jobless claims for the week
ended June 10, as well as the June readings of the New York
Fed's Empire State business conditions index and the
Philadelphia Fed business conditions index.             
                                 
    South Korean shares edged down with the Korea Composite
Stock Price Index (KOSPI)         off 0.1 percent at 2,359.04
points.
    Offshore investors were set to be net sellers, offloading
50.2 billion Korean won ($44.41 million) worth of KOSPI shares
near mid-session. 
    Market heavyweight Naver Corp             lost 1.4 percent
while SK Hynix             was down 1 percent. 
    Decliners outnumbered advancers 454 to 354.
    June futures on three-year treasury bonds         shed 0.06
point to 109.52. 
    
                       0225 GMT    Prev close
 Dollar/won             1,130.4       1,124.1
 Yen/won             10.1628/82       10.1842
 *KTB futures            109.52        109.58
 KOSPI                 2,359.04      2,361.65
 * Front-month futures on three-year treasury bonds
    

 (Reporting by Dahee Kim; Editing by Shri Navaratnam)
  

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