SEOUL: The South Korean won was trading at its weakest level since late June in domestic trade Monday, as firm June US employment data boosted expectations for the Federal Reserve to scale back its stimulus and bolstered the dollar.
The local currency was quoted at 1,151.3 against the dollar as of 0225 GMT, compared with 1,142.3 at the end of onshore trade Friday and the weakest since June 27.
Dealers said strong US employment data bolstered expectations that the Fed will start tapering its bond-buying program as early as September, pushing the dollar higher against other currencies including the won.
But the dollar-won rate was trading within a relatively narrow band, suggesting that the market was mostly factoring in Friday's news.
"It appears that the dollar-won's rise isn't as strong as previous instances of QE-related moves because the market has priced in (the employment data) in advance," one currency dealer said.
But a foreign bank dealer said that the decline in Chinese stocks is adding additional weight to risk-off sentiment, adding that the won may not be able to stage a meaningful rebound during Monday's session as a result.
The benchmark Korea Composite Stock Price Index was down 1.2 percent at 1,810.99.
September futures on three-year treasury bonds were down 0.30 points at 105.13, reflecting weak leads from US treasuries.
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