SEOUL: The South Korean won rose to a near two-month high in domestic trade Tuesday, buoyed by continued dollar-selling by exporters in the absence of other major cues to influence investors.
The currency was quoted at 1,091.4 against the dollar at the end of onshore trade, the highest since March 8, compared with Monday's domestic close of 1,094.5. Tuesday also marked its third consecutive session of gains.
"A steady flow of dollar supplies from exporters was the biggest factor in today's trading," one local bank dealer said.
Dealers said investors remained wary about potential interventions by local authorities to curb the won's rise against the dollar and the yen in order to protect exporters' price competitiveness.
But they added that there were no signs of any major activity by local foreign-exchange authorities on Tuesday, which also led to some unwinding of dollar-long positions by investors.
The benchmark Korea Composite Stock Price Index ended down 0.4 percent at 1,954.35. Foreigners were net sellers of 216.5 billion won ($197.82 million) worth of local shares on Tuesday.
Local bonds edged up on bargain-hunting and speculation that the Bank of Korea could cut interest rates at its Thursday rate-setting meeting following the Reserve Bank of Australia's surprise decision to ease policy.
June futures on three-year treasury bonds ended up 0.07 points at 107.03.
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