Reuters logo
S.Korea won slides to 6-week low, stocks wobble on Fed, N.Korea worries
September 27, 2017 / 3:16 AM / 3 months ago

S.Korea won slides to 6-week low, stocks wobble on Fed, N.Korea worries

    * Foreign investors sell both stocks and bonds
    * Trump warns any US military option would be "devastating"
for Pyongyang
    * Worries over Fed rate hike also weigh on the won

    SEOUL, Sept 27 (Reuters) - The South Korean won        slid
to six-week low on Wednesday as growing expectations of another
U.S. interest rate hike this year and political tensions between
the United States and North Korea continued to worry investors.
    The dollar rose after Federal Reserve Chair Janet Yellen
warned on Tuesday it would be "imprudent" to keep policy on hold
until inflation is back to 2 percent. She also said the U.S.
central bank "should also be wary of moving too gradually" on
rates.            
    President Donald Trump warned North Korea on Tuesday that
any U.S. military option would be "devastating" for Pyongyang,
but said the use of force was not Washington's first option to
deal with the country's ballistic and nuclear weapons program.
            
    As of 0245 GMT, the won            stood at 1,139.6 to the
dollar, down 0.3 percent from Tuesday's close and the weakest
intraday trading level since Aug. 18. 
    "The 1,140 level is like a bottom line for the won today
even after the greenback strengthened much in the global markets
overnight," said Jeong My-young, a foreign exchange analyst at
Samsung Futures.
    Jeong added that North Korea risks are expected to linger,
pressuring the won against other currencies. 
    South Korean shares wobbled in and out of negative
territory, with investors reluctant to stake out fresh positions
due to geopolitical risks and ahead of a long holiday break next
week.
    The Korea Composite Stock Price Index (KOSPI)         was at
2,374.35 points, barely moved from the previous close.
    Offshore investors unloaded a net 144.3 billion Korean won
($126.67 million) worth of KOSPI shares near mid-session.
    Market heavyweights were mixed with SK Hynix             up
1 percent and Posco             down 1.4 percent. 
    December futures on three-year treasury bonds         shed
0.1 point to 108.70 due to heavy sell-off from foreign investors
as geopolitical risks show very little signs of simmering down. 
    
                       0245 GMT    Prev close
 Dollar/won             1,139.6       1,136.8
 Yen/won             10.1385/92       10.1257
 *KTB futures            108.70        108.80
 KOSPI                 2,374.35      2,374.32
 * Front-month futures on three-year treasury bonds
    

 (Reporting by Dahee Kim; Editing by Kim Coghill)
  

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below