South Korea won edges down as momentum sags, bonds up

SEOUL: The South Korean won, which rallied briefly last week, slipped early on Monday in light vacation season trading.

The local currency was quoted at 1,113.1 against the dollar as of 0200 GMT, compared to Friday's onshore close at 1,112.2.

Market participants said some players were still willing to take the won higher after the currency breached the closely-watched 1,110 level last week.

However, local importers aiming to buy dollars cheaply and possible intervention by authorities kept the won trapped in a narrow range, traders said.

"Due to the lack of market-moving economic data or issues, the won seems to be tracking the stock market and nothing else. We're also seeing small dollar sales from exporters from time to time," said a local bank dealer in Seoul.

The benchmark Korea Composite Stock Price Index was up 0.2 percent.

Local bond prices ticked up as foreigners bought contracts, with September futures on three-year treasury bonds up 0.04 points to trade at 105.73.