SEOUL: The South Korean won traded at a near two-week high in domestic trade on Monday, extending its streak of gains to five straight sessions as investors cut long dollar positions as concerns about the scaling back of US monetary stimulus faded.
The local currency was quoted at 1,137.6 against the dollar by 0255 GMT, up 0.4 percent from Friday's domestic close of 1,142.0 and trading at its strongest level since June 19.
Dealers said domestic investors continued to unwind their long dollar positions after senior officials at the US Federal Reserve talked down initial speculation the central bank may rapidly wind down its bond-buying stimulus programme later this year.
"There hasn't been any big change in positions, and offshore flows are mixed," a currency dealer said. "There could be some new dollar-short plays being established on bets for the dollar-won rate to revert back to high 1,120s, but there could also be some bargain-hunting interest around the mid-1,130s."
But dealers added that many investors were refraining from taking big bets ahead of key US economic data to be released later this week.
The benchmark Korea Composite Stock Price Index was down 0.1 percent at 1,861.13. Foreigners were net sellers of 29.7 billion won ($26.01 million) worth of local stocks so far.
Local bonds were down on profit-taking pressure, tracking weak leads from US markets. September futures on three-year treasury bonds were down 0.25 points at 105.37.
The yield on five-year treasury bonds rose three basis points, while the yield on three-year treasury bonds was up six basis points.
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