SEOUL: The South Korean won hit two-month high against the dollar on Monday morning, suspended for a three-day winning streak as an surprising drop in US wages prompted shareholders to cut long positions in the greenback.
An otherwise solid US job report released on Friday was marred by a decline in average hourly earnings, weakening the case for an early interest rate hike by the Federal Reserve.
“Emerging market currencies are expected to advance broadly against the dollar, but significant gains (in the won) could be capped as it moderates its pace in relation to corresponding movements in the yen/won cross rate,” said Eun-jeong Son, an FX analyst at Woori Futures.
The won was quoted at 1,085.1 to the dollar as of 0210 GMT, after hitting an intraday high of 1,080.5 near the open, its highest intraday level since Nov 5. It was quoted at 1,090.0 at the end of Friday’s session.
Analysts say the local currency is facing stiff chart resistance at the 1,080.0 level.
The yen/won cross rate was seen at 9.1589 as of 0210 GMT, pulling further away from a six-year low.
Treasury bond futures surged after South Korean President Park Geun-hye, in answer to questions at a televised news address, emphasised the importance of a timely economic policy response through close co-operation with relevant authorities.
March futures on three-year treasury bonds jumped 25 basis points to trade at 108.65.
South Korean shares edged lower after a choppy trading session, with investors seen consolidating gains after a sharp three-day rally.
The Korea Composite Stock Price Index (KOSPI) was down 0.17 percent at 1,921.39 points as of 0210 GMT, floating just above its 20-day moving average of 1,918.36 points.
“The KOSPI is solidifying its foothold above the 1,900 level, with Samsung’s forecast-beating fourth quarter results soothing some of the underlying worries over corporate earnings,” said Lee Kyung-min, an analyst at Daishin Securities.
Shares in STX Corp jumped by the daily bourse limit of 15 percent in its first trading day after announcing a 9 to 1 share writedown to improve its financial structure.
The KOSPI 200 benchmark of core stocks ticked up 0.01 percent, while the small-cap heavy KOSDAQ index edged 0.12 percent higher.
shanghai shares start week with losses 25 june 2018
Hong Kong, (UrduPoint / Pakistan Point News - 25th Jun, 2018 ) :Hong Kong and mainland Chinese stocks fell on...
