SEOUL: The South Korean won was nearly flat in early domestic trade on Monday, giving up initial gains after a weak China manufacturing sector survey added to worries about the world's second-largest economy and bolstered the dollar.
The local currency was quoted at 1,080.8 against the dollar as of 0240 GMT, compared with Friday's domestic closing level of 1,080.3.
The won traded as high as 1,078.0 in early trade as some investors shorted the dollar on bets that the currency will give up some of its gains last week with the possibility of earlier-than-expected rate increases by the US Federal Reserve having been priced in.
But the local currency was pushed lower on the news that the March flash Markit/HSBC Purchasing Managers' Index for China fell to an eight-month low of 48.1 in March, marking a continued decline in manufacturing activity in the country.
"The market mood shifted on the China numbers," said a dealer at a foreign bank.
The won could trade close to its current levels for the rest of the day, however, with dealers noting foreign inflows to the stock market and some dollar selling by exporters.
The benchmark Korea Composite Stock Price Index was up 0.4 percent at 1,942.10.
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