SEOUL: The South Korean won edged lower in domestic trade on Thursday, weighed down by continuing fears about the global economic picture in the absence of news that generated momentum.
The local currency was quoted at 1,113.8 against the dollar at the end of onshore trade, compared with 1,112.5 at the end of Seoul trading Tuesday. South Korean markets were closed Wednesday for a public holiday.
Dealers said a decline by local shares and continued weakness of the Australian dollar following the Reserve Bank of Australia's rate cut on Tuesday favored the dollar. But the won traded in a narrow band, lacking strong cues.
"The market was in a wait-and-see mode ahead of overseas events like the European Central Bank rate decision," a local bank dealer said, adding that some offshore investors were seen unwinding their dollar-short positions.
A foreign bank dealer said the market will likely trade around the 1,110 level for the near future with no clear-cut news to push investors one way or another.
The benchmark Korea Composite Stock Price Index ended down 0.2 percent at 1,992.68. Foreigners were net sellers of 58.4 billion won ($52.49 million) worth of local shares on Thursday.
Local bonds edged higher as the Australian central bank's rate cut fueled speculation that the Bank of Korea will follow suit at its October 11 rate meeting.
December futures on three-year treasury bonds rose 0.04 points to 106.43. Yield on the benchmark five-year treasury bonds fell one basis point from Tuesday's close, while yield on the three-year treasury bonds fell two basis points.
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