SEOUL: The South Korean won extended gains to hit a more than two-week high against the dollar on Tuesday as the greenback remained under pressure on views that the US Federal Reserve is in no rush to raise interest rates.
The won was up 0.6 percent at 1,108.0 against the dollar as of 0230 GMT, after rising as high as 1,105.4 to hit its strongest intraday level since March 6, compared with the previous close at 1,114.6.
"Views that the Fed's rate hikes will come later than expected keep bolstering the won," said Hong Seok-chan, a foreign exchange analyst at Daishin Securities.
The won had gained 0.8 percent on Monday.
On the Seoul stock market, the benchmark Korea Composite Stock Price Index (KOSPI) edged down 0.1 percent to 2,035.67 points as investors were cautious about the effects that the eased chances of an early US rate hike may have.
Banks and banking groups fell sharply on concerns that a new government-supported mortgage refinancing programme would hurt their earnings.
KB Financial Group Inc fell 2 percent, Shinhan Financial Group Co Ltd nearly 2 percent and Industrial Bank of Korea 2.2 percent.
Hotel Shilla Co Ltd, a hotel and retail unit of Samsung Group, gained 1.3 percent after saying on Monday it would buy a 44 percent stake in US in-flight duty free retailer DFASS for $105 million.
Pharmaceutical firms were up 3.1 percent, with Hanmi Pharmaceutical Co Ltd jumping nearly 10 percent on follow-up buying after its recent exclusive license and collaboration deal with Eli Lilly.
June futures on three-year treasury bonds ticked down 0.02 points to 109.20.
Comments
Comments are closed for this article.