SEOUL: The South Korean won was up on Friday morning, rebounding from Thursday's drop as investors took profit on the dollar ahead of the US August employment data which could determine whether the Federal Reserve will start trimming its stimulus this month.
The local currency was quoted at 1,094.9 against the dollar as of 0220 GMT, compared with Thursday's domestic close at 1,098.4.
Investors were locking in their gains on the dollar from Thursday, with the currency taking a breather against its Asian peers.
Traders are unwilling to carry aggressive dollar-bullish bets into the weekend ahead of the US non-farm payrolls data due later Friday.
Coming on the heels of this week's robust US data, the employment report could influence the Fed's decision on whether to start reducing its bond-buying stimulus this month and on how quickly the programme should be unwound.
"The key issue will be the dollar supply stemming from stock market inflows, but I'm not sure how much further the dollar-won rate can fall given how far it has dropped so far," one foreign bank dealer said.
A local bank dealer said 1,094 will likely be the floor for the dollar against the won even if foreign inflows to the stock market rise in the afternoon.
The benchmark Korea Composite Stock Price Index was up 0.2 percent at 1,954.51.
September futures on three-year treasury bonds were down 0.12 points at 105.41, as firm US data overnight further fueled expectations that the Fed tapering will start in September and weighed on bonds.
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