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Monday September 17, 3:22 PMSouth Korea won hits 5-week high on Fed outlookSEOUL, Sept 17 (Reuters) - The South Korean won advanced to a five-week high against the dollar on Monday, as exporters unloaded dollars on growing expectations for an interest rate cut by the Federal Reserve this week.But the won ended up a tad lower due to wariness of possible intervention by South Korean authorities and as technical indicators signalled the local currency has overshot, having had gained about 2.5 percent since a 10-month trough hit in August. "As exporters' sales were piling up, the dollar stepped back," a local bank dealer said. "It seems to be up to the authorities as to whether it will retreat further or not." The won was last quoted at 928.3/9 per dollar, compared with the previous closing bid of 928.1. It leapt to a session high of 927.1, its highest level since Aug. 10. It faces resistance at 928, where a 120-day moving average stood. The 14-day Relative Strength Index broke below 30, indicating the won has been overbought to the dollar. Dealers are expecting the Fed to trim benchmark interest rates by at least a quarter-percentage point on Tuesday, in what would be the first reduction in U.S. interest rates in four years. Intervention fears arose after South Korea's Finance Ministry said on Friday it would take action if the won rises excessively against the dollar. Seoul shares closed flat. Foreign investors sold a net 128 billion won worth of shares by 0625 GMT, bringing their selling to a net 15 trillion won so far this year. The yen was at 115.29/33 per dollar versus 115.36 in late New York trade on Friday. On the corporate front, Hyundai Engineering and Construction announced a 1.92 billion Singapore dollar order for a port construction project in Singapore.
0600 GMT 0027 GMT prev close
Won 928.3/9 928.8/9.3 928.1
Yen/won 8.0540/627 8.0520/586 8.0439
KOSPI 1,871.68 1,872.53 1,870.02
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