SEOUL: The South Korean won fell on Thursday, headed for its worst day in more than a week, as second-quarter economic growth came in weaker than expectations and raised the probability of an interest rate cut as soon as next month.
The local currency was quoted at 1,028.3 to the dollar as of 0219 GMT, down 0.45 percent from Wednesday's close at 1,023.7 and snapping a three-day winning streak.
"The weak GDP growth supported the recent dovish stance from the authorities, and the won is falling according to growing expectations of a rate cut," said Lee Dae-ho, a currency analyst at Hyundai Futures.
The economy logged its worst quarterly growth in more than a year in the second quarter while private consumption fell by the most in nearly three years, central bank data showed.
The finance ministry unveiled stimulus measures on Thursday to prop up slowing economic growth, including plans to boost public spending by some $11 billion and ease mortgage borrowing rules.
On Seoul's main stock market, the Korea Composite Stock Price Index (KOSPI) edged up 0.2 percent to 2,032.54 points as of 0219 GMT, against Wednesday's close at 2,028.32.
Stock investors shrugged off the growth data and stimulus measures as the main elements of the plan had been leaked out since early this week.
Foreign investors bought a net 87 billion won ($84.61 million) worth of KOSPI shares near mid-session, adding onto net purchases of 1.1 trillion Korean won ($1.07 billion) in the last seven consecutive sessions.
LG Display rose 2.1 percent despite announcing after trading ended on Wednesday that its operating profit fell 55.4 percent in the second quarter. Investors looked beyond the poor data to its more positive comments about prices and shipments, with analysts expecting that profit will improve in the coming months.
SK Hynix fell 2.5 percent after the memory chip maker reported on Thursday a 2.7 percent dip in April-June earnings from a year earlier.
On the bond futures market, September futures on three-year treasury bonds edged down 0.07 percent to 107.02 as investors opted to take profits after rallies based on expectations for an interest rate cut.
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