SEOUL (Dow Jones)--The South Korean won fell for the first time in three sessions, but nearly wiped out its intraday losses after market participants took news of North Korea's nuclear test in their stride, traders said.
The won made a late comeback as players, now immune to the geopolitical risks, reminded themselves that similar events in the past were mostly short-lived, they said.
The dollar opened lower at 1,243.0 on that currency's global weakness, but spiked to a high of 1,269.4 on news that North Korea conducted its second test of a nuclear device earlier in the day.
"It (geopolitical risk) has always been there," said a local bank trader. "Whether the impact may persist (in the coming sessions) depends on other nations' reaction. I don't expect it to last long."
Samsung Futures currency analyst Jeon Seung-ji said, "The impact was smaller than expected (today). We're accustomed to this kind of news, but (the news) will at least boost volatility," she said.
She expects the dollar to trade between KRW1,230 and KRW1,260 Tuesday.
Bonds opened the day higher on bargain-hunting, but erased gainsafter news of North Korea's nuclear test broke. They subsequently recovered ground, in tandem with the won and domestic stocks.
Bond futures expiring next month ended the day 23 ticks higher at 111.09.
Daewoo Securities fixed-income analyst Yoon Yeo-sam tipped the three-year paper to trade between 3.77% and 3.87% Tuesday.
Post a Comment