SEOUL: The South Korean won edged up early on Monday, but was trapped in a narrow band as traders were wary of possible intervention by the authorities to stem the won's gains after its advances in the previous two sessions.
The won was quoted at 1,061.9 against the dollar as of 0235 GMT, up 0.1 percent from Friday's close at 1,063.4.
"Trading has been very quiet. Wariness against intervention is keeping the won from going any higher," said a foreign bank dealer in Seoul.
The market was on guard as the won neared the 1,060 level, where authorities had intervened a few weeks ago.
"Everyone is being careful about pushing the won further up. There may have been some market smoothing and it's safe to say that the authorities would be willing to do that at this level," said another local bank dealer.
The benchmark Korea Composite Stock Price Index was up half a percent, with some market participants saying dollar sales linked to the stock market's gains could hoist the won higher in the afternoon.
Other players said exporters were waiting to sell the dollar at the 1,062 level, which could provide more support for the won later in the session.
December futures on three-year treasury bonds added 0.02 points to trade at 105.62.
Comments
Comments are closed for this article.