SEOUL: The South Korean won inched higher and briefly hit its strongest level in nearly six years on Tuesday morning, favoured by exporters selling dollars for month-end settlements and March's upbeat current account data.
The local currency was quoted at 1,031.4 versus the dollar as of 0220 GMT, up 0.3 percent from Monday's onshore close at 1,035.0. It rose as high as 1,030.6 per dollar, the strongest since setting 1,030.0 on Aug. 12, 2008.
"The won is expected to show a gradual rise in the near term as persistent current account surpluses and firm demand from exporters and offshore funds outweigh the downside risks," said Woori Futures analyst Son Eun-jung, referring to events such as the Federal Reserve's policy meeting and a key US nonfarm payroll data due later in the week, which are likely to bolster the greenback.
South Korea's bullish March current account data also supported the won. The Asia's fourth-largest economy extended its string of surpluses to a 34th month in March on a seasonally adjusted basis, central bank data showed on Tuesday.
Woori's Son, however, said the caution over intervention by local foreign exchange authorities, as well as a potential hawkish comment by the Fed Chair Janet Yellen will hamper a sharp rise in the local currency.
Local stocks reversed their initial gains in the morning, with the Korea Composite Stock Price Index (KOSPI) down 0.4 percent at 1,962.25 points as of 0220 GMT, touching its weakest level since March 26.
Market bellwether Samsung Electronics Co Ltd dropped 2.1 percent after reporting a 3.3 percent fall in first quarter operating profit to 8.5 trillion won ($8.2 billion), still above market forecasts of 8.4 trillion.
Steelmaker POSCO gained 2.7 percent after saying in a regulatory filing on early Tuesday it was considering a restructure to improve its financial health.
Media reports said earlier that POSCO was considering selling a stake in its trading and resources arm Daewoo International Corp, which it had brought in 2010, for 3.37 trillion won. Daewoo International stocks plunged 4.7 percent.
Meanwhile, Hanjin Shipping Co Ltd advanced 3.7 percent after its shareholders on Tuesday approved reformation in corporate governance structure. Affiliate Hanjin Shipping Holdings Co Ltd rose to the daily limit of 15 percent.
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