SEOUL: The South Korean won climbed to its highest onshore close in 10 months, buoyed by the Bank of Japan's expansion of its asset-purchase programme on Wednesday.
The local currency was quoted at 1,114.8 against the dollar at the end of onshore trade, its strongest domestic close since 1,110.7 on Nov. 14. The won was quoted at 1,118.3 at the end of the Seoul session on Tuesday.
The won was nearly flat in early domestic trade but began rising after the Bank of Japan (BOJ) eased policy by increasing its asset buying and loan programme.
"The BOJ decision was more aggressive than expected, which is boosting risk-on sentiment in financial markets here and abroad," one Seoul bank dealer said.
But dealers also said the market will be cautious about potential intervention by local authorities to slow the pace of the won's appreciation. The currency has strengthened by 1.8 percent against the dollar this month.
The benchmark Korea Composite Stock Price Index also rebounded from session lows following the BOJ stimulus, ending up 0.2 percent at 2,007.88. Foreigners were net buyers of 181.1 billion won ($161.94 million) worth of local shares on Wednesday.
Local bonds fell on profit-taking pressures as the BOJ's easing lifted risk appetites. December futures on three-year treasury bonds fell 0.09 points to 105.88.
Yield on the benchmark five-year treasury bonds rose three basis points from Tuesday's close, while yield on the three-year treasury bonds rose two basis points.
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