South Korean won advances

The South Korean won hit a one-month high against the dollar on Wednesday as investors sought more risk, putting pressure on low-yield currencies such as the greenback. The won, however, gave up some earlier gains on heightened caution over possible dollar-buying intervention by the foreign exchange authorities and as local stocks retreated.
The local currency is expected to remain strong as the dollar is seen staying softer globally, although the authorities may intervene in the market to maintain the export competitiveness of Asia's fourth-largest economy, analysts said.
The South Korean unit was quoted at 1,225.8/7.8 per dollar as, compared with Tuesday's domestic close of 1,233.2. The won earlier strengthened to as firm as 1,220.0, the strongest since August 10.