SEOUL, August 03 (AJP) - The South Korean won recovered most of its early losses on Monday as the impact of U.S. yen buying carried into Asian currency markets, while Korean government bond yields were little changed ahead of inflation data.
The won stood at 1,431.1 per dollar at 3:30 p.m., remaining 7.1 won weaker than Friday’s corresponding level.
The exchange rate climbed into the 1,440 range after trading resumed on Monday morning as weekend developments and renewed weakness in Korean equities were priced into the market, but it later retreated to the low 1,430s.
The yen remained firm after the United States joined Japan’s currency-market intervention last week and purchased the Japanese currency, easing broader dollar-buying pressure against Asian currencies.
A sharp decline in Korean equities and dollar demand linked to foreign stock sales, however, limited the won’s recovery and kept it weaker than Friday’s 3:30 p.m. level.
In the bond market, the three-year Korean government bond yield fell 1.6 basis points to 3.742 percent, while the 10-year yield edged up 0.3 basis point to 4.264 percent.
Investors largely refrained from making strong directional bets ahead of July inflation data due Tuesday, awaiting further clues on price pressures and the Bank of Korea’s future policy path.
Copyright ⓒ Aju Press All rights reserved.
