SEOUL: The South Korean won firmed against the dollar on Tuesday as the greenback came under pressure from a sharp rebound in oil prices and commodity-linked currencies.
The won was quoted at 1,108.2 to the dollar as of 0115 GMT, compared to Monday's close of 1,113.5, with the local currency finding support from short-covering after slumping to a 15-month intraday low in the previous session.
Profit-taking emerged in the dollar ahead of a busy week of macroeconomic events, including the European Central Bank's policy meeting on Thursday and US payrolls data on Friday.
"Investors cashed out with healthy profits from the dollar's latest spurt, especially with underlying concerns that low inflation from cheap oil prices could potentially delay the timing of the Fed's next rate hike," said Hong Seok-chan, an FX Strategist at Daishin Economic Research Institute.
Seoul shares edged lower on Tuesday as weak manufacturing activity in China and the euro zone fuelled worries over slowing global growth and its impact on South Korean exports.
The Korea Composite Stock Price Index (KOSPI) was down 0.2 percent at 1,961.23 points as of 0115 GMT.
A slew of recent data showing lacklustre exports, cooling inflation, and slowing factory activity has reinforced expectations of additional easing by the country's central bank.
Blue-chip exporters were broadly lower, with Hyundai Motor slipping 1.9 percent while Samsung Electronics fell 1.1 percent.
Shares in Sajo Industries shed 2.8 percent after one of the fishing vessels operated by the firm sank in the Bering Sea off the Russian coast, killing one crew member and leaving more than 50 people missing.
Energy and shipbuilding counters bucked trends, posting modest gains after being pummelled in recent session amid falling oil prices.
SK Innovation, South Korea's largest refiner, gained 1.1 percent while Hyundai Heavy Industries climbed 1.3 percent.
December futures on three-year treasury bonds shed 4 basis points to trade at 108.31.
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