S.Korean won falls, but stock funds limit losses

SEOUL, Aug 25 - The South Korean won fell 0.6 percent against the dollar on Tuesday dampened by a plunge in Chinese shares after a pause on Wall Street, but its losses were limited by continued foreign buying of local stocks.

The won ended local trade at 1,247.7/8.7 per dollar, down from Monday's domestic close of 1,240.0.

It showed a resilience to the more than 5 percent drop in the Shanghai Composite stock index because losses in Seoul's main stock market were relatively limited at less than 1 percent on the back of foreign purchases.

"The domestic stock market's recovery from an early bigger drop and the foreign net buying lent support to the won," said a domestic bank dealer.

Foreign investors extended their buying spree into a third consecutive session, purchasing a net 205 billion won ($164 million) worth of shares on Seoul's main exchange.

The won, like many emerging market currencies, has tracked global stock markets higher in recent weeks as optimism of an economic recovery encouraged investors to increase their bets on riskier assets.

0600 GMT 0020 GMT Prev close Won 1,247.7/8.7 1,244.6/5.0 1,240.0 Yen/won 13.2791/844 13.1815/900 13.0643/729 KOSPI 1,601.38 1,608.19 1,612.22