The South Korean won fell more than 1 percent against the dollar on Monday, weighed down by higher oil prices and a weaker stock market. As oil prices climbed above $136 a barrel, expectations mounted for more dollar demand from local refiners, which import crude oil.
The Seoul stock market's benchmark KOSPI fell 0.89 percent to a 12-week closing low. Foreign investors remained net sellers in the main board for the 11th consecutive session, selling 403.3 billion won in net on Monday by the close. Dollar demand from offshore players also pressured the won despite steady dollar offers by exporters, dealers said.
The domestic currency was quoted at 1,039.0/3 per dollar, down from Friday's domestic close of 1,027.8. "As long as there's no intervention, players prefer the dollar," said a dealer at a foreign bank. South Korean authorities fear a weaker won would exacerbate already high local consumer inflation stemming from high global commodities prices.
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