BLBG:South Korean Won Declines a Second Day as Importers Boost Dollar Purchases
South Korea’s won weakened for a second day on speculation importers stepped up dollar purchases to settle bills. Government bonds were steady.
The currency extended this year’s losses to 2.8 percent, headed for the first annual decline since 2008, as a central bank survey showed consumer confidence in the country fell to a three-month low of 99 in December from November’s 103. The Kospi (KOSPI) Index of local shares fell 0.8 percent today.
“Currency declines were triggered by importers’ dollar demand and stock-market losses,” said Yun Se Min, a Seoul-based currency dealer at Busan Bank. “Trading volume is very low, making prices fluctuate on small orders.”
The won slid 0.3 percent to 1,158.68 per dollar in Seoul, after gaining as much as 0.3 percent earlier, according to data compiled by Bloomberg. The currency touched a one-week low of 1,160.09.
The yield on the 3.5 percent bonds due September 2016 was unchanged at 3.52 percent, according to Korea Exchange Inc. prices. Benchmark five-year rates slid 56 basis points this year, set for a second annual decline, according to data compiled by Bloomberg.
To contact the reporter on this story: Jiyeun Lee in Seoul at jlee1029@bloomberg.net
To contact the editor responsible for this story: Sandy Hendry at shendry@bloomberg.net
