SEOUL: The South Korean won ended up on Thursday, touching its highest level in more than six months on foreign capital inflows and local exporters' dollar selling but later gave up some gains on suspected dollar-buying intervention by local authorities.
The local currency was quoted at 1,085.0 against the dollar at the end of onshore trade after trading as high as 1,081.5, the strongest since Feb. 28. This compared with Wednesday's domestic close of 1,086.5.
Foreign inflows to the local stock market as well as supply of dollars from local exporters seeking to convert their contract payments applied steady upward pressure on the won, which is up 2.3 percent against the dollar so far this month.
But dealers suspected that local authorities bought dollars to slow the local currency's pace of appreciation against its US counterpart amid renewed concerns about local exporters' price competitiveness stemming from the won's rise.
"It looks like the authorities are trying to keep the dollar-won rate supported at around 1,082," one foreign bank dealer said.
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