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S.Korea won buckles under dollar after Trump vows tax reform, stocks up
February 10, 2017 / 2:39 AM / 8 months ago

S.Korea won buckles under dollar after Trump vows tax reform, stocks up

    * Won trading range expected at 1,130-1,160 next week
-analyst
    * KOSPI lifted by strong Wall Street

    SEOUL, Feb 10 (Reuters) - The South Korean won        fell
to a one-week low early on Friday as the dollar regained
strength after U.S. President Donald Trump said he would
announce plans for tax reform,  expected to reduce taxation for
individuals and businesses.             
    The won            stood at 1,152.2 as of 0216 GMT, down 0.6
percent compared to Thursday's close of 1,145.8. It touched 
1,154.5, its lowest since Feburary 2. The won was set to end the
week down, snapping five consecutive weeks of gains.
    "Every comment made by Trump is significantly affecting
financial markets," said Park Sung-woo, a foreign exchange
analyst at NH Futures.
    Park added that the investors are waiting for Donald Trump
and Japanese Prime Minister Shinzo Abe's summit later in the day
and U.S. Federal Reserve Vice Chair Stanley Fischer's speech on
Saturday, although bigger focus will be on the summit.
    "The won's trading range will be 1,130-1,160 in coming
week," Park said.
    Meanwhile, South Korean shares were largely supported by a
strong Wall Street, buoyed by Trump's comments on his tax plans.
    The Korea Composite Stock Price Index (KOSPI)         was up
0.5 percent at 2,076.77 points.
    Offshore investors were set to be net sellers and sold 49.7
billion Korean won ($43.15 million) worth of KOSPI shares near
mid-session.
    Chipmaker SK Hynix             lost 3.8 percent on foreign
selling.
    LG Chem Ltd             rose 2.5 percent, and Lotte Fine
Chemical Co Ltd             1.4 percent, lifting the sub-index
for chemicals more than 1 percent.     
    Declining issues and advancing ones were almost even by 389
to 384.
    March futures on three-year treasury bonds         shed 0.05
point to 109.48. 
    
                       0216 GMT    Prev close
 Dollar/won             1,152.2       1,145.8
 Yen/won             10.1236/38       10.1511
 *KTB futures            109.48        109.53
 KOSPI                 2,076.77      2,065.88
 * Front-month futures on three-year treasury bonds
    

 (Reporting by Dahee Kim; Editing by Simon Cameron-Moore)
  

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