* Won falls about 1 pct after Fed raises rates, KOSPI slips
* Won to extend loss for few weeks on dollar strength
SEOUL, Dec 15 The South Korean won and
shares slipped on Thursday after the Federal Reserve hiked U.S.
interest rates and signalled that a faster pace of monetary
tightening is in place for the year ahead.
The South Korean won was quoted at 1,182.0 against
the U.S. dollar at 0108 GMT, down 1.05 percent from its previous
close of 1,169.7.
The Korea Composite Stock Price Index (KOSPI) fell
0.55 percent to 2,025.63 points, extending losses from its
previous close of 2,036.87.
Markets showed little reaction after the Bank of Korea on
Thursday held its policy interest rate steady at a record low
for a sixth straight month.
"The selloff in the won is a little more than expected,
probably because the Fed said it sees three rate hikes in 2017,
which is more than what the markets had in mind," said Kim
Doo-un, a foreign exchange analyst at Hana Futures.
"The won could extend losses to 1,210 per dollar through
March next year as the dollar is expected to strengthen further
under Trump," Kim said. Republican Donald Trump is set to become
U.S. president towards the end of January.
Before onshore trading began earlier on Thursday, South
Korean vice finance minister Choi Sang-mok said the government
would maintain the highest level of caution against financial
market volatility that could increase following the Fed's
Foreign investors sold a net 27.90 billion Korean won's
worth of KOSPI shares near mid-session, weighing on the index.
Decliners outnumbered advancers by 394 to 361.
December futures on three-year treasury bonds fell
0.18 points to 109.39.
0108 GMT Prev close
Dollar/won 1,182.0 1,169.7
Yen/won 10.0374 10.0702
*KTB futures 109.39 109.59
KOSPI 2,025.63 2,036.87
* Front-month futures on three-year treasury bonds
(Reporting by Cynthia Kim; Editing by Joseph Radford)