South Korean Won Hits 14-Month High Against Dollar; KOSPI Jumps 1.64%

The South Korean won advanced to a fresh 14-month high against the US dollar on Friday, correlated with a recent strong gain of the Japanese yen. The won was quoted at 1,350.4 won per dollar at 3:30 pm (local time), up 8.9 won from the close of the previous stock trading session, marking the strongest level since June 30 last year, reports Yonhap news agency.

The won has rebounded in recent weeks as local exporters cut their dollar holdings and SK hynix Inc. converted its proceeds from a mega U.S. listing into the Korean currency. Traders also focused on expectations that Japan's financial authorities may intervene to support the yen, which had suddenly strengthened this week. Foreigners purchased a net 479.3 billion won (US$354 million) worth of local stocks during the latest trading session, with the benchmark Korea Composite Stock Price Index gaining 1.64 percent to close at 6,687.21. South Korean stocks rose for a second consecutive session on Friday to finish nearly 2 per cent higher, as the country's strong export figures and easing concerns over U.S. interest rate hikes fuelled risk appetite. The Korean won rose against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) closed up 107.73 points, or 1.64 percent, to 6,687.21, following a 0.26 percent gain the previous day. Trade volume was light at 235.5 million shares worth 17.46 trillion won (US$12.9 billion). Winners outnumbered losers 546 to 309. The index was lifted by foreign and institutional investors, who scooped up a combined net 2.15 trillion won. Retail investors offloaded 3.72 trillion won. "Rate hike concerns eased following comments from Federal Reserve Gov. Christopher Waller, while risks stemming from the Middle East and the yen carry trade persist," Lee Kyoung-min, an analyst from Daishin Securities, said.

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