SEOUL: The South Korean won rose in domestic trade Tuesday, climbing to a two-week high on continued unwinding of dollar-long positions by foreigners and exporters seeking to convert their contract payments.
The local currency was quoted at 1,115.2 against the dollar at the end of onshore trade, compared with 1,120.5 at the end of the Seoul session on Monday. It traded as high as 1,114.0, marking the highest level since April 2.
The won started lower against the dollar in early trade after news of bombing blasts in the US unnerved investors. But risk aversion appeared to ease as the day wore on, with local stocks recovering from their intraday lows.
Dealers said offshore players continued to close their existing bets against the won, boosting it against the US dollar.
"Some heavy-industry firms are also selling dollars, which has affected the market," one local bank dealer said.
The South Korean government unveiled its proposal for an extra budget earlier Tuesday, which included nearly $5 billion won of fiscal stimulus to boost growth. But the package was in line with market expectations and had little impact.
The benchmark Korea Composite Stock Price Index ended up 0.1 percent at 1,922.21. Foreigners were net sellers of 245.4 billion won ($218.98 million) worth of local shares on Tuesday.
Local bonds rose on bargain-hunting and some renewed concerns about the global economic recovery. June futures on three-year treasury bonds ended up 0.16 points at 106.72.
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