South Korea won gains on firm stocks; eyes on Fed

SEOUL, Nov 4 - The South Korean won <KRW=> rose slightly against the dollar on Wednesday as local stocks extended gains with continued net buying by foreign investors.

But investors remained reluctant to chase the won <KRW=> further as they await the result of the U.S. Federal Reserve's policy meeting later in the day.

The main focus is the Fed's statement at the end of its two-day meeting, with speculation it might drop or alter its pledge to keep rates low for an "extended period". [nFEDAHEAD]

"If the Fed makes any change, that will cut appetite for riskier assets including Seoul shares, but the won is expected to find support from exporter demand for settlements," said Jeong My-young, a currency strategist at Samsung Futures Inc.

The local currency was quoted at 1,177.35/9.60 per dollar as of 0600 GMT, compared with Tuesday's domestic close <KRW=KFTC> of 1,182.0.

Seoul shares <.KS11> ended up 1.94 percent as foreign investors bought a net 103.4 billion won worth of stocks.

They bought a combined net 452.1 billion won during the previous three consecutive sessions.

On the corporate front, South Korea's SK Engineering & Construction said it had won a $2.1 billion plant order in Abu Dhabi in the United Arab Emirates, prompting expectations for more won demand. [ID:nSEL002737]

0600 GMT 0010 GMT Prev close Won 1,177.35/9.60 1,182.8/3.7 1,182.0 Yen/won 13.0350/89 13.0763/46 13.0900/74 KOSPI 1,579.93 1,555.07 1,549.92