The South Korean won climbed against the dollar en route to its highest close in more than two months, after an unexpected fall in US wages disappointed dollar bulls betting on an early rate hike by the Federal Reserve.
The won was quoted at 1,081.4 to the dollar at the conclusion of onshore trade, its highest close since November 4, versus 1,090.0 at the end of Friday’s session.
The currency briefly erased the bulk of early gains after South Korean President Park Geun-hye emphasised the importance of a timely response by economic policymakers, but clawed back lost ground after an aide to Park said her remarks were not assuming a rate cut was assured.
Treasury bond futures surged after Park’s remarks, with the benchmark three-year futures for March delivery jumping as much as 26 basis points to 108.67.
South Korean shares edged lower on Monday, as further signs of slowing global growth prompted investors to consolidate gains following a sharp three-day rally.
The Korea Composite Stock Price Index (KOSPI) fell 0.19 per cent to close at 1,920.95 points.