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S.Korea won at 11-mth high on exporters, G20 draft

Published: 24 Sep 2009 23:08:47 PST

* Won hits 11-mth high; exporters, G20 spur stop-losses

* Seen rising further on eased worries about exit strategy (Updates to domestic close)

SEOUL, Sept 25 - The South Korean won hit an 11-month high against the dollar on Friday, helping the local currency post a fifth consecutive weekly gain, helped by exporters and pledges by global leaders to maintain their stimulus plans.

Market players cleared dollar-long positions to stop losses, which they had built up on expectations of currency intervention by the authorities, providing the won <KRW=> with further support.

The local currency is expected to rise further as worries about tightening policy eased after the Group of 20 rich and developing countries pledged to keep emergency economic supports in place until a durable recovery is secured, analysts said. [ID:nSUM000113]

"Today's serial stop-loss selling confirmed many players were holding a mass of dollar positions to be cleared. There are more players, especially exporters, that have dollars to be sold still," said Jeong My-young, a currency strategist at Samsung Futures.

"The won is heading for a resistance level of 1,167 per dollar as fears of an exit strategy were dissolved," she added.

The South Korean unit was quoted at 1,185.25/7.25 per dollar as of 0600 GMT, almost 1 percent up from Thursday's domestic close <KRW=KFTC> of 1,195.7.

It strengthened to as firm as 1,183.6, the strongest since Oct. 14, 2008.

The won gained 1.8 percent for the week.

Seoul shares <.KS11> ended down 0.14 percent after falling as much as 1.89 percent earlier, as foreign investors sold a net 145 billion won worth of stocks.

Still, the local currency may be locked in a tight range as stocks are likely to fall further and on persistent caution over possible dollar-buying intervention by the authorities, some analysts said.

"Appetite for risky emerging Asian assets will remain, but should ease a tad on rising fears about a looming equity correction," said Daniel Soh, a strategist at FORECAST Pte Ltd, adding that the won was expected to move between 1,185 and 1,193 per dollar.

0600 GMT 0010 GMT Prev close Won 1,185.25/7.25 1,195.2/7.2 1,195.7 Yen/won 13.0707/14 13.1526/85 13.1488/79 KOSPI 1,691.48 1,679.13 1,693.88