The South Korean won joined most of its regional peers to fall against the dollar on Tuesday, touching a near two-week low by mid-day.

The won was down 0.7 per cent at 1,097.5 per dollar as of 0248 GMT, the lowest level since May 14. It had closed 1,090.1 on Friday.

Yellen's comments

South Korean markets were closed on Monday for the Buddha’s birthday holiday. The dollar was strengthened by hawkish remarks from the Federal Reserve Chair, Janet Yellen, and a rise in the US consumer price index (CPI) on Friday.

“Domestic exporters’ demand for settlements supported the won, although it was hit hard by Yellen’s comments. And the won is following the Japanese yen’s fall against the dollar as well,’’ said Yuna Park, a foreign exchange analyst at Dongbu Securities.

South Korean shares edged down early in the session, tracking Wall Street’s falls on Friday after Yellen’s speech.

Risk-on sentiment contracted in the ongoing concerns over Greek debt negotiations. The Korea Composite Stock Price Index (KOSPI) was down 0.2 per cent at 2,142.56 points, versus the previous close at 2,146.10.

Losing stocks outnumbered winners 474 to 335. Cheil Industries Inc bucked the trend, jumping 14 per cent after saying it will acquire affiliate Samsung C&T Corp by September. Samsung C&T rose by the daily limit of 15 per cent.

The sub-index for textile companies, to which Cheil Industries belongs, outperformed the broad market, up 10.7 per cent. Hotel Shilla Co Ltd rose 3.2 per cent after saying it will build the world’s largest downtown duty free store with its partner Hyundai Development if it wins one of two new duty free licenses in Seoul.

Meanwhile, foreigners were set to be net buyers for the 10th consecutive session, with net purchases of KOSPI shares worth over 1.315 trillion won ($1.20 billion) at the close on Friday.

June futures on three-year treasury bonds were up 0.09 points at 108.98.

comment COMMENT NOW