The South Korean won was set to snap a three-day streak of gains early on Thursday, edging lower versus the dollar as local currency dealers said they believed Seoul’s foreign exchange authorities were intervening to buy the greenback.

The won was trading at 1,103.8 per dollar as of 0308 GMT, about 0.3 per cent below the previous close of 1,100.8.

“We suspect the FX authorities started their dollar buying around the 1,100 range,”’ said one foreign bank dealer in Seoul. He declined to be identified by name due to the sensitivity of the issue. ‘

Another bank dealer said government-backed steps likely pressured the won to the 1,103-1,104 range around mid-day.

South Korean shares also fell on Thursday, with technology and medical stocks matching declines in similar shares in the US market overnight.

The benchmark Korea Composite Stock Price Index (KOSPI) dropped 0.6 per cent to 2,031.8 points, compared to Wednesday’s close of 2,042.81.

“South Korean shares fell, tracking the US market, but forecasts that local companies’ profits are improving are still very much alive,’’ said Park Seok-hyun, an analyst at Eugene Investment & Securities.

The domestic market’s losses would be smaller than those in the US overnight, the analyst said.

Early in the session, shares in South Korean technology giant Samsung Electronics Co Ltd were down 2.6 per cent. SK Hynix Inc dropped 2.3 per cent, and LG Display Co Ltd lost 1.4 per cent as of 0308 GMT.

Pharmaceutical firms slipped 2.1 per cent, with Hanmi Pharmaceutical Co Ltd leading declines, losing nearly 7 per cent. Offshore investors were poised to become net sellers on Thursday, ending nine consecutive days of buying.

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