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The South Korean turned higher against the dollar on Friday as local shares swung to positive territory and helped by exporters' bids for settlements. The won received further support as investors cleared dollar-long positions and booked profits from gains in the US currency, traders said.
The local currency was expected to stay rangebound next week with a lack of fresh factors, analysts said. Appetite for the country's assets remained strong on hopes for a recovery in Asia's fourth-largest economy despite fall in US stocks, they added.
"Market players are expected to recalibrate their positions for now. There were signs of renewed US stock weakness, but Asian bourses have found good support so far, signalling a greater interest to buy on bargains than sell on fears," said Daniel Soh, a currency strategist at FORECAST Pte Ltd.
The South Korean currency was quoted at 1,265.7/6.1 per dollar as, compared with Thursday's domestic close of 1,269.5. It slid to as weak as 1,278.2. The won rose 1.45 percent for the week. Seoul shares ended up 0.61 percent after losing as much as 1.57 percent as foreign investors bought a net 72.7 billion won worth of stocks on the main exchange.

Copyright Reuters, 2009

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