SEOUL, Aug 19: The South Korean won edged up early on Monday but trading was light as most investors waited for the minutes of the U.S. Federal Reserve’s last policy meeting for hints on when stimulus might be scaled back.
The local currency was quoted at 1,111.8 against the dollar as of 0200 GMT, compared to Friday’s domestic close at 1,113.6.
‘I don’t think offshore investors were selling dollars and (the won likely rose) on this morning’s low market average rate and some traders cutting dollar-long positions,’ said a foreign bank dealer in Seoul.
Market participants are looking out for Federal Reserve-related events scheduled for this week, keeping trade on Monday subdued.
Minutes from the Fed’s July 30-31 policy meeting will be released on Wednesday, followed by the Fed’s annual monetary policy conference in Jackson Hole, Wyoming, on August 22-24.
Traders said they do not expect the won to move past the 1,110 level on Monday, curbed by wariness of possible government intervention to slow the won’s gains.
The won is down roughly 4 percent against the dollar this year.
The benchmark Korea Composite Stock Price Index was down 0.2 percent.
September futures on three-year treasury bonds slid 0.10 points to trade at 105.40 as bond prices tracked U.S. treasury yields.
(agencies)
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