SEOUL: The South Korean won edged down in domestic trade Monday, snapping a seven-day winning streak as weak US corporate earnings and the protracted euro zone fiscal crisis weighed on investor sentiment.
The local currency was quoted at 1,104.2 against the dollar at the end of onshore trade, compared with 1,103.3 at the end of the Seoul session on Friday.
But the won ended well off its intraday low of 1,106.5 against the dollar after a victory by the Spanish ruling party in Prime Minister Mariano Rajoy's home region boosted expectations that the beleaguered country is inching closer to requesting bailout funds.
This, in turn, reduced fears about the euro zone's problem from spiraling out of control and lifted the euro and Asian currencies against the dollar.
Dealers also said a steady supply of dollars from local exporters, primarily from heavy industry players, also provided support for the local currency throughout the session.
STX Offshore & Shipbuilding Co. said it got a 743 billion won ($673 million) drillship order from a European client.
The benchmark Korea Composite Stock Price Index ended down 0.1 percent at 1,941.59, recovering after falling as low as 1,910.23. Foreigners were net sellers of 79.1 billion won worth of local shares on Monday.
Local bonds fell, with foreigners unwinding their long positions on won-denominated debt amid speculation that the Bank of Korea may not ease policy again anytime soon. December futures on three-year treasury bonds ended down 0.15 points at 105.99.
Yields on benchmark five-year treasury bonds and three-year treasury bonds each rose three basis points from Friday's close.
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