SEOUL: The South Korean won gave up earlier gains in the session and ended nearly flat on Wednesday as the local currency was weighed down by the dollar's renewed strength in the afternoon and losses in the domestic stock market.
The local currency was quoted at 1,133.6 against the dollar at the end of onshore trade, compared to Tuesday's domestic close at 1,134.0.
The won had rebounded earlier in the session from recent consecutive losses, tracking the Japanese yen's rise against the dollar which was sparked by disappointment that the Bank of Japan did not provide new measures to curb bond market volatility.
However, the local currency lost its footing after the dollar regained ground against the yen in the afternoon, market participants said.
"Right now it's easier to lean towards bidding on the dollar on concerns the US Federal Reserve might taper off its bond-buying programme," said a foreign bank dealer in Seoul.
"The won is likely to keep easing on broad global dollar strength."
A fall in the Seoul bourse led by foreigners' heavy selling also weighed down the won, washing out dollar sales by South Korean heavy industry exporters.
The benchmark Korea Composite Stock Price Index ended 0.6 percent down, with offshore investors dumping a net 403.7 billion won ($356.23 million) worth of South Korean stocks on Wednesday.
Local bonds fell, pressured by foreign selling of futures contracts. June futures on three-year treasury bonds fell 0.20 points to 105.84.
Yield on the five-year treasury bonds and yield on the three-year treasury bonds both rose 8 basis points to 3.08 percent and 2.88 percent, respectively.
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