SEOUL: The South Korean won slipped on Tuesday as emerging Asian currencies came under pressure after an unexpected rate cut by the Reserve Bank of Australia drove down the Australian dollar.
The local currency was quoted at 1,112.5 against the dollar at the end of onshore trade, compared with 1,111.4 at the end of the Seoul session on Friday.
Bonds rallied on expectations of easing by the Bank of Korea later this month after the Reserve Bank of Australia announced a 25-basis-point rate cut.
Dealers said investors appeared reluctant to push the won higher with the markets closed for the National Foundation holiday on Wednesday. Korean markets were also shut on Monday because of the Chuseok holiday.
South Korea reported weak September manufacturing and inflation data earlier on Tuesday, but dealers said investors had already priced in economic weakness because of the continuing euro zone crisis.
The benchmark Korea Composite Stock Price Index ended down 0.18 points at 1,996.03. Foreigners were net buyers of 58.8 billion won ($52.91 million) worth of local shares on Tuesday.
December futures on three-year treasury bonds ended up 0.15 points at 106.39, recovering from initial losses. Yields on the benchmark five-year treasury bonds and three-year treasury bonds each fell five basis points.
Comments
Comments are closed for this article.