SEOUL: The South Korean won was steady in early trade on Monday, as most investors were content to sit on their hands in the absence of major cues heading into the year-end.
The local currency was quoted at 1,061.2 against the dollar as of 0201 GMT, compared with Friday's domestic close at 1,061.2.
The won lost ground last week following the US Federal Reserve's decision to start tapering its bond-buying programme, but analysts say foreign capital inflows and a firm stock market may limit the currency's decline over the rest of the month.
"The dollar-won rate should trade in a 1,060-1,065 band heading into the Christmas break," said Hyundai Futures currency analyst Lee Dae-ho, adding that trading volumes may remain subdued because of the holiday season.
Some dealers said the won may get a boost in coming sessions on dollar supply from exporters looking to convert their contract payments, which could have a disproportionate impact because of the reduced activity near year-end.
The benchmark Korea Composite Stock Price Index was up 0.6 percent at 1,995.86.
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