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The won fell on Monday morning after a tepid Chinese manufacturing survey threatened prospects for South Korean exports, while mixed US economic data lifted the dollar.
The won was down 0.7 per cent at 1,080.40 per dollar by 0319 GMT from the previous close at 1,072.40 on Thursday. The market was closed on Friday for Labour Day.
A batch of US data released on Friday provided a mixed picture on the outlook for the world’s largest economy, having a positive net effect on the dollar as it failed to show a further worsening in the economy.
Early on Monday, data showed China’s HSBC/Markit Purchasing Managers’ Index (PMI) fell to 48.9 in April — the lowest level since April 2014 — from 49.6 in March.
“The won will remain under pressure, moving between 1,078 and 1,087, as growing expectations for more stimulus from China will boost the dollar,’’ said Kim Moon-il, an analyst at Eugene Futures.
Meanwhile, South Korean shares edged up as the market was struggling to end a five-day losing streak, with banks and insurance firms leading gains on hopes that rising market interest rates would help improve their earnings.
The Korea Composite Stock Price Index (KOSPI) was up 0.3 per cent at 2,133.32 points compared with its previous close at 2,127.17 on Thursday.
The sub-index for banks rose 4.1 per cent and that for insurers 2.8 per cent, with Industrial Bank of Korea jumping 6 per cent and Samsung Fire & Marine Insurance Co Ltd 6 per cent.
Dongkuk Steel Mill fell 3 per cent on a local media report that it was considering shutting down a factory making shipbuilding plates because of the industry’s downturn. Naver Corp extended its fall into a third consecutive session on concerns about its earnings.
South Korea’s largest web portal operator fell 5.9 per cent to 612,000 won, its lowest intraday level since November 19, 2013. June futures on three-year treasury bonds were down 0.15 points at 108.82, hit by upbeat remarks on the economy by senior government officials.
President Park Geun-hye had said on Monday that the economy was showing signs of improving following fiscal and monetary stimulus. Financial markets will be closed on Tuesday for the Children’s Day holiday.
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