SEOUL: The South Korean won edged higher in early domestic trade Thursday, recouping some of the previous day's losses as stock market inflows continued and local exporters steadily sold dollars.
The local currency was quoted at 1,074.7 against the dollar as of 0202 GMT, compared with Wednesday's domestic close of 1,076.7.
Dealers said offshore investors and local exporters were seen selling the dollar against the won, pushing the local currency higher. Foreign inflows to the local stock market lent further support.
But investors remain wary about potential intervention by local authorities to curb the won's gains, with it up 6.2 percent against the dollar this quarter.
"We are growing more concerned about the decline in the (dollar-won) exchange rate given its rapid decline recently," said Choi Hee-nam, a director general at the Ministry of Strategy and Finance who oversees foreign-exchange related matters including market interventions.
Dealers said 1,070 is proving to be a firm support level for the US currency against the won, with some offshore investors starting to buy the dollar on its lows in late morning trade.
"How the market fares for the rest of the day will depend on the strength of dollar-selling, but we can't ignore that the other Asian currencies such as the Singapore dollar turned weaker against the US dollar," said a dealer at a local bank.
The benchmark Korea Composite Stock Price Index was down 0.63 points at 1,997.43, little changed from Wednesday amid continuing foreign capital inflows.
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