SEOUL: The South Korean won eased slightly against the dollar on Monday morning, retreating from six-year highs as investors waited for any possible changes in the country's monetary and fiscal policies later this week.
The local currency was quoted at 1,010.0 versus the dollar as of 0205 GMT, down 0.1 percent from Friday's onshore close at 1,008.9.
Dealers and analysts pointed to a parliamentary appearance of a nominee finance minister on Tuesday and a Bank of Korea policy meeting on Thursday as key event risks for local markets this week, with growing expectations of fiscal and monetary policy easing to support the slowing economy.
"The market will look for hints about a possible rate cut at BOK meeting and comments regarding currency rates by the finance minister nominee at the parliamentary hearing," said a currency dealer at a domestic bank.
"The upside pressure attempting to set fresh year-high levels is intact, but concerns about further appreciation in the currency are likely to cap gains," he added while expecting the won to trade between 1,005 and 1,023 for the week.
The won breached a key resistance level of 1,010 and hit 1,008.4 per dollar last week, the strongest since July 30, 2008. It struggled, however, to rise much higher with investors wary of dollar-buying intervention by the South Korean foreign exchange authorities.
The local currency is the fastest-appreciating Asian emerging unit, strengthening 4.5 percent against the dollar so far this year.
In the local stock market, the Korea Composite Stock Price Index (KOSPI) was down 0.4 percent at 2,001.53 points as of 0205 GMT after touching an intraday low of 2,000.28, the weakest since July 1.
"Samsung Electronics's earnings guidance is the lone worry left in the market, with some market people talking second quarter operating profit coming in at an early-7 trillion won range," said Choi Kwang-hyeok, an analyst at E-Trade Investment & Securities.
"Regardless of how the figures come out tomorrow, Samsung Electronics shares are expected to be lifted in bargain hunting, and depending on the figure, a relief rally in the broader market is possible," Choi added.
Samsung Electronics Co Ltd is set to release its April-June period earnings guidance on Tuesday, which is likely to have fallen 12.6 percent according to a Thomson Reuters I/B/E/S poll. Shares of the world's biggest handset maker fell 0.8 percent by midday.
Shipbuilders were in negative territory on concerns over grim earnings outlook for the April-June quarter. Hyundai Heavy Industries Co Ltd, fell 2 percent while Samsung Heavy Industries Co Ltd slipped 2.4 percent.
Offshore investors purchased a net 37.4 billion won ($37.03 million) worth of KOSPI shares near mid-session, after purchasing 1.2 trillion won over the past seven sessions.
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