SEOUL: The South Korean won declined for a fourth straight day against the dollar on Friday as yet another failure by Greece to reach a deal with its
foreign creditors dented appetite for riskier assets. The won was down 0.5 percent at 1,115.0 per dollar as of 0259 GMT, and touched a morning low of 1,117.3, the weakest level since June 17.
“The won could slip under the 1,119 level today as sentiment is weak,” said Kim Moon-il, a foreign-exchange analyst at Eugene Futures.
“The Greek situation warrants close watching,” Kim said, noting that markets are nervous as the risk of Greece defaulting on its debts has increased given Athens’ inability to strike a deal with its creditors.
German Chancellor Angela Merkel, whose country is Greece’s biggest creditor, said the next meeting of Eurogroup ministers on Saturday would be “of decisive importance” for a Greek solution since time was running out. The cautious backdrop capped Seoul stocks.
The Korea Composite Stock Price Index (KOSPI) edged up 0.3 percent at 2,091.30 points from the previous close at 2,085.06. Losing stocks outnumbered winners 507 to 303.
“Today’s gain on low trading volumes doesn’t seem like a meaningful rise,” said Kim Yoon-seo, an analyst at KTB Investment & Securities.
Pharmaceutical shares outperformed the broad market, rising 3.9 percent. Ildong Pharmaceutical Co Ltd jumped 22.2 percent after local media reported the company had received approval from the Ministry of Food and Drug Safety to sell its new anti-hypertension drug.Automakers also underpinned the index, with Hyundai Motor Co up 2.2 percent and Ssangyong Motor Co Ltd gaining 2 percent.
September futures on three-year treasury bonds wereup 0.02 points at 109.01.
