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S.Korea won at 1-wk low on Trump risks, stronger dollar; stocks steady
May 19, 2017 / 2:52 AM / 6 months ago

S.Korea won at 1-wk low on Trump risks, stronger dollar; stocks steady

    * Won set for 3rd straight declining session
    * Weaker demand for risky assets also pressuring won

    SEOUL, May 19 (Reuters) - The South Korean won       
declined for a third consecutive session to drop to more than a
one-week low early on Friday as deepening uncertainty about
Donald Trump's presidency fuelled risk-aversion among investors
in emerging markets like South Korea. 
    U.S. President Trump flatly denied he asked the Federal
Bureau f Investigation to end a probe into possible collusion
between his campaign team and Russia, but talk over the
possibility that he could be impeached has made some investors
in emerging markets look for safer havens.             
    A sharp acceleration in U.S. factory activity gave the
dollar a lift on international exchanges, putting extra pressure
on the won.             
    The won            was quoted at 1,128.3 against the dollar
as of 0235 GMT, down 0.3 percent compared with Thursday's close
of 1,124.5. It had touched as low as 1,131.1 as soon as the
market opened. 
    "It is true that the greenback itself strengthened in the
global market, but the won seems to be losing more than expected
due to strong risk-off mood in Asia region," said Ha
Keon-hyeong, a foreign exchange analyst at Shinhan Investment
    He expected dollar strength to continue in coming week, but
saw won trading in a narrow range as end-month dollar-selling
from local exporters will support the South Korean currency.
    South Korean shares were almost unchanged with The Korea
Composite Stock Price Index (KOSPI)         at 2,286.70 points.
    Offshore investors had purchasedg 63.2 billion Korean won
($56.09 million) worth of KOSPI shares near mid-session.
    Hyundai Motor Co             denied a media report that it
is seeking to introduce a holding company structure, though
investors still harboured expectations. The company shares rose
over 3 percent.             
    Market heavyweight Samsung Electronics             dropped
2.4 percent.
    June futures on three-year treasury bonds         gained
0.06 point to 109.50. 
                       0235 GMT    Prev close
 Dollar/won             1,128.3       1,124.5
 Yen/won             10.1472/17       10.1183
 *KTB futures            109.50        109.44
 KOSPI                 2,286.70      2,286.82
 * Front-month futures on three-year treasury bonds

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

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