The South Korean won rose early on Thursday as poor US retail sales data was widely seen as easing the case for an early interest rate increase by the Federal Reserve.
The won was up 0.5 per cent at 1,094.8 to the dollar as of 0245 GMT from the previous close at 1,099.7 as the US currency came under pressure globally.
Some traders said the won’s upside was limited by speculation that the South Korean authorities may intervene and buy dollars to curb the local currency’s strength.
“The won will trade at around 1,095 today as further movements were limited over possible intervention by the local authorities,’’ said Park Yuna, a foreign exchange analyst at Dongbu Securities.
Meanwhile, Seoul shares were nearly flat standing at 2,117.0 points on choppy trade, with the Korea Composite Stock Price Index (KOSPI) up 0.1 per cent. On Wednesday, it had closed at 2,114.16.
Shinsegae Co Ltd jumped 8 per cent as investors bet the company’s plan to operate a duty-free shop in central Seoul will help sharply boost its growth. It is vying for a government licence to operate the duty-free shop.
Shares in Daum Kakao, the country’s leading Internet portal and mobile messaging service operator, jumped 5 per cent after saying it was considering options for Internet banking services.
June futures on three-year treasury bonds were down 0.02 points at 108.82 ahead of the central bank’s monthly policy meeting on Friday, when most analysts surveyed by Reuters expect the Bank of Korea to hold interest rates steady.