SEOUL: The South Korean won hit its strongest level in more than nine months on Wednesday after soft US jobs data bolstered bets that the Federal Reserve will not begin reducing its bond-buying stimulus until 2014.
The local currency was quoted at 1,055.9 against the dollar as of 0220 GMT, compared with Tuesday's domestic closing level of 1,060.3. The won traded as high as 1,055.6, the strongest since Jan. 18.
Weaker-than-expected US jobs growth in September suggested that the country's growth lost some momentum even before the 16-day partial shutdown of the federal government, leading to speculation that the Fed's tapering will be delayed until at least early next year.
Foreign investors were on track to extend their record net buying streak of local stocks to a 39th session, adding further support for the local currency. But dealers said the market may be reluctant to push the won much higher as the currency inches closer to its 2013 high of 1,054.5.
"There is some wariness about the level as well as some profit-taking at the moment," a dealer at a foreign bank said, adding that the closing level for the won on Wednesday may be near the intraday high. "But I think the local authorities will be keen to ensure that the year-to-date high for the won isn't broken (today)."
Local policymakers have repeatedly voiced concerns about the rate of the won's appreciation and are suspected of having bought dollars several times over the past two months to curb the local currency's gains. Some dealers suspected that local authorities had bought dollars late Tuesday to slow the won's rise.
The benchmark Korea Composite Stock Price Index was flat at 2,056.17.
December futures on three-year treasury bonds were up 0.14 point at 106.04
Comments
Comments are closed for this article.