The South Korean won hit a six-week high against the dollar on Friday, boosted by month-end exporter demand and as diminished risk aversion prompted appetite for Asian emerging currencies. The country's current account also turned to a small surplus, providing further support to the local currency.
But lingering concerns over dollar-buying intervention by South Korea's authorities and sustained foreign sales in the Seoul stock market prevented the won from rising further.
The won is expected to gain further on exporters and risk appetite next week, although worries about possible intervention may limit its gains, dealers said. The won was last quoted at 923.75/4.25 per dollar, compared to its previous closing bid of 926.5. It briefly rose to a session high of 923.4, its strongest since 922.9 on May 16. The South Korean unit gained 1.8 percent versus the dollar in the second quarter with a 0.4 percent gain for the week.