BR:South Korea won steadies as exporters sell dollars, Fed in focus
SEOUL: The South Korean won steadied after an initial fall on Monday, led by some exporters selling dollars as markets braced for the outcome of the US Federal Reserve's policy meeting this week.
The local currency was quoted at 1,052.1 against the dollar as of 0242 GMT, compared with Friday's domestic closing level of 1,052.6.
The won initially traded as low as 1,054.3 against the dollar amid speculation that the US budget deal and improving economic indicators could lead the Fed to start reducing its bond-buying stimulus programme at its Dec. 17-18 policy meeting.
A start to the Fed's stimulus taper this week would likely spur a broad dollar rally. Uncertainty over the tapering timeline has buffeted global markets in recent months.
The won recovered as exporters were seen unloading dollars to convert their contract payments into the local currency, traders said.
"It looked like the dollar was getting strong bids above Friday's closing level against the won, but then the exporters' dollar supply emerged and pushed the dollar-won rate lower," one
local bank dealer said.
Dealers said the dollar will likely remain in a 1,050-1,055 range against the won in the absence of unexpected developments.
The benchmark Korea Composite Stock Price Index was up 0.2 percent at 1,967.14.
