SEOUL: The South Korean won edged down on Wednesday, marking a fifth day of losses as investors unwound bets on the local currency after nominee finance minister Hyun Oh-seok hinted at potential government intervention.
The local currency was quoted at 1,097.4 against the dollar at end of trade on Wednesday, compared to Tuesday's local close at 1,095.2.
The won had inched down from early trade on comments from Germany's central bank that risks from the euro zone were still present, but movements were curbed by a lack of fresh economic data to lend momentum.
Later in the session, the local unit slid slightly further down after South Korean finance minister nominee Hyun Oh-seok said in Parliament that he would look for ways to stabilise the foreign exchange market in case of increased volatility.
Hyun has been answering questions from lawmakers this week and made the comment, which spooked investors over possible intervention by the new government, during a confirmation hearing on Wednesday.
"Sentiment in the market is that it is yet too early to head to the 1,100 level, so we will see trade just under that in the 1,090 range for the time being," said a foreign bank dealer in Seoul.
The benchmark Korea Composite Stock Price Index was up 0.3 percent, while foreign investors were net sellers of 110.9 billion won ($101.25 million) worth of South Korean stocks on Wednesday.
Local bonds were hardly changed as market participants await a rate decision by the Bank of Korea on Thursday. A poll conducted by Reuters this week showed that a majority of economists surveyed forecast the central bank will hold interest rates at 2.75 percent, while chances of a future rate cut have been increasing.
March futures on three-year treasury bonds shed 0.02 points to 106.70.
Yields on the five-year treasury bonds and three-year treasury bonds were unchanged at 2.72 percent and 2.61 percent, respectively.
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