The South Korean won gained on Friday for the first time in five sessions as Seoul shares hit a record high and exporters sold dollars. Investors also cleared long-dollar positions before potentially market-moving events next week in the United States, and dealers said the conversion to dollars of dividend payments to foreign investors was smaller than the $400 million they had expected.
But a weaker yen limited the won's gains. Many offshore players also were away for the Easter holidays, thinning trade.
The won finished local trade at 958.4 per dollar, 0.32 percent higher than Thursday's domestic close of 961.5, although it had dipped as low as 963.4 during the day, dealers said.
The currency fell 0.54 percent over the week.
"The won succeeded to defend a supporting level despite dividend payments to foreigners, so investors had to clear their long (dollar) positions," said a local bank dealer.
"Foreign investors dampened expectations for a weaker won, turning to net buyers (on the stock market)," he added.
Foreigners bought a net 67.6 billion won worth of shares after selling 358.2 billion won in the previous two sessions, as the main KOSPI index rose to an all-time high on optimism about a recovery in exporters' profits in the second half.
Next week, markets are looking to US data, including February capital flows, inflation and housing figures, and the April 20 meeting between Chinese President Hu Jintao and US President George W. Bush.
The Bush administration has been pressing China to let the yuan appreciate further.
The yen, which the won usually follows closely as South Korean companies compete with Japanese peers in key export markets, was quoted at 118.66/70 per dollar versus 118.39/42 in late Asia trade on Thursday.
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