SEOUL: The South Korean won firmed for a third straight session after investors were reassured the Federal Reserve may not taper its stimulus policy in a rush and data showed South Korea's current account rose to a record high in May.
The local currency was quoted at 1,149.7 against the dollar at the end of onshore trade, up 0.4 percent from Wednesday's domestic close at 1,154.5.
The won found higher ground from earlier in the session after the US government slashed its first-quarter growth estimates to 1.8 percent from the 2.4 percent previously reported, which some analysts said may caution the Fed against rapidly unwinding its bond-buying programme.
Bets on the won also grew after Federal Reserve Bank of Richmond President Jeffrey Lacker said the Fed's communications had been through a "rocky" patch but financial markets were now more in sync with the central bank's message.
"The won has been recouping its losses after investors realised their recent worries over the United States and China were overheated," said a foreign bank dealer in Seoul.
The Bank of Korea said earlier on Thursday that the country ran a record current account surplus in May with and without seasonal adjustments, providing additional support for the won.
The benchmark Korea Composite Stock Price Index finished up 2.9 percent, with foreign investors snapping up a net 105.6 billion won ($91.47 million) worth of South Korean stocks on Thursday.
Local bonds edged up ahead of the finance ministry's scheduled release of its July bond issuance plan later in the day as the ministry said earlier this month it plans to reduce its long-term paper issuance.
June futures on three-year treasury bonds ticked up 0.02 points to 105.32.
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