South Korea's Won Snaps 7-Day Loss on Intervention Speculation

By Kim Kyoungwha and Judy Chen

Aug. 19 (Bloomberg) -- South Korea's won rose, ending a seven-day losing streak, on speculation the nation's foreign- exchange authorities will buy the currency to stem its slide.

Traders are ``on high alert'' against the government and central bank's dollar-buying intervention as the won approaches 1,050 to the U.S. currency, a level that previously invited policy makers to act strongly, according to Kim Jang Wook, a currency dealer with Shinhan Bank in Seoul.

``There are some tensions involving possible intervention by the government to defend the 1,050 level,'' Kim said. ``Still, demand for currency hedging from asset managers is increasing, putting pressure on the won as global shares slump.''

The currency rose 0.1 percent to 1,045.60 against the dollar as of 09:35 a.m. in Seoul, according to Seoul Money Brokerage Services Ltd. The won lost 10.6 percent this year, the worst performer after the Thai baht among the 10 most-active regional currencies outside of Japan.

The won will move between 1,043 and 1,050 today, Kim said. Central banks intervene in the currency market by selling or buying foreign exchange.

To contact the reporters on this story: Kim Kyoungwha in Beijing at kkim19@bloomberg.net; Judy Chen in Shanghai at xchen45@bloomberg.net;