SEOUL, Sept 25: The South Korean won slipped in early trade on Wednesday, tracking declines in local stocks as concerns about a potential U.S. Government shutdown weighed on investors’ appetite for riskier assets.
The local currency was quoted at 1,076.1 as of 0206 GMT, compared with Tuesday’s domestic close of 1,072.2.
Three U.S. Senators have threatened to stall a bill that would fund the country’s government, underscoring uncertainties about whether the U.S. Government can avoid a shutdown on Oct. 1 and unnerving some investors.
Overseas investors were net sellers of local stocks in early trade on Wednesday following 20 consecutive days of foreign inflows, weighing on the won.
‘Stocks are weak and foreign inflows to that market have dwindled, so the dollar is seeing firm support,’ a dealer at a foreign bank said, adding that offshore investors were also seen buying the dollar against the won.
Though the won could see some support from exporters looking to sell the dollar in the afternoon, another foreign-bank dealer said the dollar is more likely to remain up against the won given the current conditions.
The benchmark Korea Composite Stock Price Index was down 0.5 percent at 1,996.79.
December futures on three-year treasury bonds were up 0.02 point at 105.90, tracking U.S. Treasuries’ gains overnight. (AGENCIES)
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