South Korea won closes at six-month high

The South Korean won posted its strongest local close in more than six months on Monday, as a sustained rally in local shares and data showing solid exports in 2005 prompted dollar sales.
The won settled at 1,008.0 per dollar, marking the best finish since June 10, 2005 when it ended at 1,006.3. Monday's close was 0.36 percent higher than Thursday's 1,011.6.
The market was closed on Friday and opened an hour later than usual on Monday.
For all of 2005, the currency gained 2.3 percent against the dollar, after surging 15 percent in 2004.
Seoul shares scaled an all-time high on the first trading day of 2006 as growing optimism for earnings powered Hyundai Motor Co and other blue chip shares higher.
Foreign investors bought a net 17 billion won worth of equities on the main bourse.
But slow trade put a lid on the dollar's fall with Tokyo, Hong Kong and other major markets closed on Monday.
"Given that dollar supply was topping demand, market sentiment was towards a fall in the dollar, but most companies remained cautious on the first trading day of the new year," a local bank dealer said.
"Their participation in trading today seemed like a warming-up exercise in the absence of fresh leads from New York and other major markets."
Transaction volume in the spot market stood at $2.6 billion on the day, about 60 percent of a daily average, according to foreign exchange brokering companies.
Wariness about a possible intervention by the authorities weighed on the market, but dealers said they did not spot any move by the authorities to check the dollar's loss.
Data on Sunday showed South Korean exports rose a slower-than-expected 11.2 percent in December from a year earlier. Exports for all of 2005 grew 12.2 percent to $284.7 billion, bringing the country's trade surplus to $23.55 billion.
The Bank of Korea is due to release foreign exchange reserve figures for the end of December at 2100 GMT.
The yen, which the won usually follows closely, was quoted at 117.63/71 per dollar, compared with 117.99 in late US trade on Friday.
On the political front, South Korean President Roh Moo-hyun reshuffled his cabinet on Monday, naming new ministers to the crucial commerce and unification portfolios, the presidential Blue House said.