The South Korean won fell to a 20-month low against the dollar ahead of the Federal Reserve’s policy meeting this week and growing expectations for an early rise in US interest rates.

The won fell as low as 1,136.6 per dollar, its weakest since July 10, 2013. It was last quoted at 1,134.0 as of 0335 GMT, compared with the previous close at 1,128.5.

“The won fell in line with many of its regional peers as expectations remain high that some signals will come out this week after the (Fed’s) meeting,’’ An Ki-tae, an economist at NH Investment & Securities’, said.

Fed policy meet

Many analysts suspect the Fed will lay the groundwork for a move as soon as mid-year at this week’s two-day policy review beginning on Tuesday.

The won has been on a steadily falling trend since late January on talk of US interest rate hikes and as the local economy’s recovery turns out to be weaker than expected.

On the stock market, the benchmark Korean Composite Stock Price Index (KOSPI) was up 0.14 per cent at 1,988.59 points as of 0335 GMT, despite a small amount of net sales by foreign investors during the morning.

Exporters jump

Export companies, including Samsung Electronics and Hyundai Motor led the gains, underpinned by hopes the won’s recent decline and low oil prices will help boost their earnings in the coming months.

“Heavyweights such as Samsung and Hyundai rose this morning on hopes for an export recovery aided by the weakened local currency,’’ said Gwak Hyun-su, an analyst at Shinhan Investment, adding their gains were partly offset by losses of shipbuilding and energy shares.

Samsung rose 1.17 per cent and Hyundai gained 2.03 per cent, whereas SK Innovation and S-OIL dropped by around 4 per cent each.

Investors shrugged off the findings from a private-sector survey showing the country’s 30 biggest business conglomerates will increase investment by 16.5 per cent this year from last year.

In bond futures trading, lead March treasury bond futures were up 0.02 points at 109.05 by 0335 GMT.

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