The won ended the local session up 1 percent against the dollar on Friday, or 2.2 percent above a session low, after reports of repeated dollar-selling intervention by the South Korean authorities. The won ended the session at 1,117.8 per dollar, compared with Thursday's domestic close of 1,129.0 and Friday's session low of 1,142.7.
But the won has still lost 2.6 percent versus the dollar on the week. The first reports of intervention came early in the day as the won, hit hard by selling this week on fears about a possible capital flight out of the country, was headed for the worst week in 10 years against the dollar.
"Intervention was combined with sporadic unwinding of dollar positions by traders, and so the effect of intervention was relatively big today," said a domestic bank dealer, referring to the market sentiment turning less bearish toward the won. A Reuters poll of 12 economists showed on Friday the won probably has peaked or could fall only slightly below a 4-year low set early this week before making a rebound to end this year some 3 percent above the current level.
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