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CORRECTED - CORRECTED-S.Korea won at 9-day low on intervention caution
Reuters - Wednesday, August 11
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SEOUL, Aug 11 - The South Korean won hit a 9-day low against the dollar early on Wednesday as caution grew over possible dollar-buying intervention by the foreign exchange authorities and Seoul shares retreated.
The authorities were suspected of buying dollars overnight in offshore non-deliverable forward trade to keep the won <KRW=> weak, dealers said.
The local currency was quoted at 1,176.5/7.0 per dollar as of 0100 GMT, compared with Tuesday's domestic close <KRW=KFTC> of 1,168.7. It weakened to as soft as 1,179.9, the weakest since Aug. 2.
"The authorities showed strong willingness to defend the 1,170 level," said a senior foreign bank dealer.
The won found some relief from exporters and expectations for a weaker dollar after the Federal Reserve took a step to counter a weakening U.S. economic recovery, analysts and dealers said. [ID:nN09275781]
Local data showed the unemployment rate rose in July but strong growth in both employment numbers and job seekers suggested domestic demand was on a gradual recovery track. [ID:nTOE67908U]
Seoul shares <.KS11> fell 0.62 percent as foreign investors sold a net 36.5 billion won worth of stocks on the main exchange.
0100 GMT Prev close
Won 1,176.5/7.0 1,168.7
Yen/won 13.7771/903 13.6058/172
KOSPI 1,769.50 1,781.13
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