South Korea’s won declined after a six-day run of net sales of local stocks by global funds amid outflow concerns spurred by the Greek debt crisis.
Foreign funds sold $1.07 billion more Kospi shares than they bought in the six days through Friday, before turning net buyers of $4 million for Monday. An agreement wasreached over the reforms needed to start formal negotiations on Greece, European Union President Donald Tusk said on Twitter Monday.
“Risk-off sentiment is dominant,” said Park Dae Bong, a currency trader at Nonghyup Bank in Seoul, adding that he sees the won trading between 1,120 and 1,140 a dollar this week. “Exporters taking advantage of the weaker currency can cap the decline.”
The won fell 0.1 percent to close at 1,130.51 a dollar in Seoul, data compiled by Bloomberg show, taking its decline for the year to 3.5 percent this year.
China’s benchmark stock index sank to a three-month low last week even as the government tried to stem the drop. Federal Reserve Chair Janet Yellen said Friday that an interest-rate increase in 2015 remains appropriate.
The Greek crisis is an uncertainty for South Korea along with China’s economic outlook and any rise in U.S. interest rates, Bank of Korea Governor Lee Ju Yeol said last week after cutting the nation’s economic growth forecast for 2015 to 2.8 percent from 3.1 percent.
The yield on South Korea’s sovereign notes due June 2018 fell one basis point to 1.81 percent, Korea Exchange prices show. The 10-year yield climbed one basis point to 2.51 percent.
original source: http://www.bloomberg.com/news/articles/2015-07-13/korean-won-falls-as-global-funds-pull-1-billion-in-seven-days