SEOUL: The South Korean won edged lower in domestic trade on Monday, giving up some of its gains from Friday amid renewed global economic uncertainties and questions over whether Spain will seek bailout funds.
The local currency was quoted at 1,120.5 against the dollar at the end of onshore trade, compared with 1,190.0 at the end of the Seoul session on Friday.
Spain's economy minister said on Saturday that the government won't rush to get a rescue package to deal with its debt problems, which encouraged dollar-long positions as well as short-covering on positions built when the won rose on Friday.
But dealers said a steady supply of dollars from local exporters provided support for the won, keeping the market within a narrow band.
"While risk-off sentiment is playing out in the market today, it's hard to get a clear sense of direction," a currency dealer said, adding that the won may not move much beyond the 1,120 mark for some time.
The benchmark Korea Composite Stock Price Index ended up 0.1 percent at 2,003.44. Foreigners were net sellers of 100 million won ($89,300) worth of local shares on Monday, snapping an 11-day streak of inflows.
Local bonds ended up on renewed global economic uncertainties. December futures on three-year treasury bonds rose 0.08 point at 106.15.
Yields on the benchmark five-year treasury bonds and three-year treasury bonds each fell by three basis points.
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