SEOUL: The South Korean won edged lower in early trade on Monday, as risk-appetite was hit by concerns over a slowing Chinese economy and lingering caution the US Federal Reserve will start winding down its stimulus this year.
The local currency was quoted at 1,128.8 against the dollar as of 0025 GMT, compared with 1,127.4 at the end of onshore trade Friday.
The won fell nearly 1 percent against the dollar last week after less-dovish remarks by Fed Chairman Bernanke and weak China factory activity.
Part of the local currency's fall was due to unwinding of bets that the yen will fall further against the won. The dollar has slipped from its 4-1/2 year high against the yen as risk-aversion spiked last week, which has indirectly pushed the won lower against its Japanese counterpart.
The benchmark Korea Composite Stock Price Index was up 0.2 percent at 1,976.94.
June futures on three-year treasury bonds were up 0.05 points at 106.75.
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