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8 months ago
S.Korea won slips to one-week low ahead of Fed, stocks steady
December 12, 2016 / 2:36 AM / 8 months ago

S.Korea won slips to one-week low ahead of Fed, stocks steady

* Won pressured by strong dollar ahead of Fed
    * FOMC meeting to take place this week
    * Stocks open strong but lose ground on Fed uncertainty

    SEOUL, Dec 12 (Reuters) - The South Korean won 
slumped to a one-week low in early trade on Monday as the dollar
firmed broadly ahead of a Federal Reserve policy meeting where
interest rates are expected to be raised again to follow a hike
late last year.
    The won was quoted at 1,170.3 against the dollar
as of 0219 GMT, down 0.4 percent from its previous close of
1,165.9.
    During morning trading it traded at lows last seen on Dec.
5.
    "The dollar's path is quite clear. It lost some ground
towards the end of the weekend but now it's jumped back up and
if the yuan softens midday we'll see the won falling further,"
said a foreign bank dealer in Seoul. 
    South Korean shares opened at their highest level since Oct.
25 as investors felt some uncertainty in the market was erased
after South Korean lawmakers voted overwhelmingly on Friday to
impeach President Park Geun-hye over an influence-peddling
scandal. 
    However, the modest gains were quickly erased as foreigners
took profits ahead of the Fed meeting, with the Korea Composite
Stock Price Index (KOSPI) trading down 0.01 percent at
2,024.40 points.
    On Sunday, South Korea's regulator said authorities were
ready to punish those who attempt to disrupt markets amid
volatility sparked by the political issue at home on top of
uncertainties abroad. 
    Construction shares rallied more than 3 percent
after oil prices shot up early on Monday on hopes higher
revenues in the Middle East from oil would benefit South Korean
builders there.
    Electricity and electronics stocks were down 1.4
percent.
    December futures on three-year treasury bonds were
trading down 0.05 points at 109.27. 
    
                       0219 GMT    Prev close
 Dollar/won             1,170.3       1,165.9
 Yen/won            10.1439/526       10.1595
 *KTB futures            109.27        109.32
 KOSPI                 2,024.40      2,024.69
 * Front-month futures on three-year treasury bonds

 (Reporting by Christine Kim; Additional reporting by Kyoung-ho
Lee; Editing by Simon Cameron-Moore)

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