S. Korean won drops for first time in eight days

South Korea's currency fell against the U.S. dollar for the first time in eight sessions Friday as currency authorities snapped up the greenback to curb the won's strength, dealers said.

The Korean currency ended at 920.3 won to the dollar on the Seoul currency market, down 6.5 won from the previous session, snapping a seven-day gaining streak.

"Authorities' intervention was big enough to send the local currency sharply lower," said Lee Jeong-wuk, a dealer at Woori Bank.

As the won started falling, local lenders also engaged in stop-loss buying of the U.S. dollar, sharpening the won's decline, he said.

After opening at 915 won to the greenback, the currency rose to 914.6 won briefly after the market opening, but pared gains and started plunging from the intervention as low as 921 won. Due to the lenders' stop-loss dollar buying, the Korean currency hit an intra-day low of 923 won to the greenback, dealers said.

South Korea's currency authorities were estimated to have bought US$1.5 billion to $2 billion in the market Friday alone.

South Korean policymakers frown upon the won's strength as it hurts exports, the cornerstone of the country's economic growth, by making them more expensive and less competitive in overseas markets.

Seoul, Dec. 8 (Yonhap News)