The South Korean won gave up most of its earlier gains against the dollar by late Friday as heavy foreign sales of Seoul shares prompted traders to price in higher selling pressure on the local currency next week. The won ended local trade at 906.5/7.1 per dollar, after hitting a session high of 904.7. The previous closing bid was 907.2.
"It's very difficult for the won to move in either direction today, stuck between the dollar's global weakness and heavy foreign stock sales," said a foreign bank dealer. The local currency was little changed on the dollar this week.
Foreign investors sold a net 780 billion won ($860 million) worth of shares on Seoul's main stock market, which could translate into dollar purchases a few days later for repatriation. The Seoul stock market's benchmark KOSPI ended 0.55 percent higher on buying by local investors. The dollar fell against major currencies after downbeat economic remarks by Federal Reserve Chairman Ben Bernanke on Thursday.
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