SEOUL: The South Korean won halted a two-day slide, rising against the dollar on Friday as banks and domestic exporters bought it while rising Seoul shares also gave a boost.
The local currency was quoted at 1,116.3 against the dollar at the end of onshore trade on Friday, up 0.7 percent from Thursday's close at 1,124.0.
On a weekly basis, the won rose 1.1 percent, its biggest weekly gain in nine weeks.
Traders said foreign and local banks pushed the won up from early trade while there were few position plays from market participants on a lack of direction-lending cues.
Korean exporters were also seen buying the local currency against the dollar for payments after two days of losses, adding to the won's rally.
"There wasn't a specific event that caused the won to rise but I think some dealers also started betting on the won after the stock market started going up," said a local bank dealer in Seoul.
The benchmark Korea Composite Stock Price Index was up 0.4 percent, while foreigners were net sellers of 251.7 billion won ($223.99 million) worth of South Korean stocks.
Another dealer said downside risks to the won were reduced compared with early in the week when geopolitical tensions on the Korean peninsula were higher and global growth concerns undermined the local currency.
Local bond prices, which jumped on Thursday, fell after stocks rose. June futures on three-year treasury bonds fell 0.06 points to trade at 106.76.
Yield on the five-year treasury bonds and yield on the three-year treasury bonds both rose 2 basis points each.
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