S.Korea won hits 16-wk low; eyes on upcoming Fed minutes, U.S. jobs data

* Won shrugs off N. Korea missile test, unlikely to extend
losses -analyst
* Investors waiting for Fed minutes, U.S. jobs data this
* KOSPI flat; foreigners net sell local stocks

SEOUL, July 4 (Reuters) – The South Korean won was
flat in early trade on Tuesday after briefly touching a 16-week
low as the dollar gained strength overnight, even as the market
largely shrugged off a missile launch by North Korea.
North Korea launched a ballistic missile from its western
region into the sea off its east coast ahead of a summit of
leaders from the Group of 20 countries in Germany later this
The won stood at 1,147.6 against the dollar as of
0207 GMT, down 0.1 percent compared with Monday’s close of
1,146.9. It fell to as low as 1,150.0 at the start of trade, the
weakest intraday level since March 15.
“As the won is already at around near four-month low, the
investors will trade cautiously while waiting for the release of
Federal Reserve’s June meeting minutes and the U.S. jobs data
coming this week,” said Jung Sung-yoon, a foreign exchange
analyst at Hyundai Futures.
The Fed minutes are due on Wednesday, while the jobs data
will be out on July 7.
South Korean shares were little changed, with the Korea
Composite Stock Price Index (KOSPI) at 2,393.27.
Offshore investors were set to be net sellers, offloading
68.2 billion won ($59.43 million) worth of KOSPI shares near
Automobile shares slumped due to weak June sales, with the
transportation equipment sub-index posting a 2 percent
drop. Hyundai Motor Co and Kia Motors Corp
fell as much as 3.7 pct and 2.7 pct, respectively.

Decliners outnumbered advancers 453 to 309.
September futures on three-year treasury bonds shed
0.06 point to 109.22.

0207 GMT Prev close
Dollar/won 1,147.6 1,146.9
Yen/won 10.1289/33 10.1347
*KTB futures 109.22 109.28
KOSPI 2,393.27 2,394.48
* Front-month futures on three-year treasury bonds

(Reporting by Dahee Kim; Editing by Biju Dwarakanath)