SEOUL: The South Korean won was nearly flat in domestic trade on Tuesday as investors took a breather following the currency's sharp rise the day before amid lingering concerns about potential intervention by local authorities to curb its gains.
The local currency was quoted at 1,074.7 against the dollar as of 0240 GMT, compared with Monday's domestic close of 1,073.8.
Dealers said investors grew cautious on the news executives at some local exporters had met South Korean foreign exchange authorities. Senior government official said this was a routine annual meeting to discuss market conditions, but investors became wary about dollar-buying intervention.
The won is up by more than 6 percent against the dollar so far this quarter, raising concerns about local exporters' price competitiveness at a time when external demand remains subdued. The won is also up by 5.6 percent against the yen, which has given Japanese firms an export advantage.
"Some position adjustments are unavoidable today since the dollar fell by about 10 won yesterday, but it's also difficult to see much upside," one foreign bank dealer said.
The benchmark Korea Composite Stock Price Index was down 0.4 percent at 2,002.00.
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