SEOUL: The South Korean won pulled slightly away from a 7-month low on Wednesday as investors covered short positions after the currency fell nearly 3 percent against the dollar in the last four sessions.
The won was quoted at 1,075.8 to the dollar as of 0135 GMT, compared with Tuesday's close of 1,076.5.
"Investors were consolidating gains from the dollar ahead of major events on the calendar such as the ECB policy meeting and U.S jobs data," said Hong Seok-chan, an FX strategist at Daishin Economic Research Institute.
The won has been tracking sharp falls in the yen following the Bank of Japan's surprise decision to expand its bond-buying stimulus programme on Friday.
The move places the European Central Bank under additional pressure to shift into higher gear with aggressive measures of their own, although it is expected to stand pat to wait for further clues when it convenes for its policy meeting on Thursday.
Analysts view the 1,080 level as a line of major technical support, with exporters cashing out with profits on their dollar earnings near that level.
South Korean shares were little changed, erasing tentative early gains as risk appetites were subdued by worries over sputtering economic growth in the euro zone.
The Korea Composite Stock Price Index (KOSPI) was up 0.06 percent at 1,936.44 percent as of 0135 GMT.
The European Commission on Tuesday cut its growth outlook for the euro zone economy to 0.8 percent this year, down from 1.2 percent it forecast in spring, adding that it needed another year to recover to even modest growth levels.
Defensive plays such as utilities were the winners of the day, with Korea Electric Power Corp rising 2.8 percent and Korea Gas Corp jumping 6.1 percent.
At the other end of the spectrum, energy counters underperformed, mirroring overnight losses in their U.S peers as oil prices continued to fall, with Brent crude touching a four-year low of $82.74 per barrel.
LG Chem shares fell 2.2 percent while S-Oil was down 2.1 percent.
Airline share bucked the downward trend, however, lifted by a softer won and falling jet fuel prices. Korean Air , the nation's largest passenger carrier, gained 1.8 percent while Asiana Airlines soared 5.4 percent.
December futures on three-year treasury bonds was trading at 108.24, unchanged from Tuesday's close.
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