S.Korea won, stocks sluggish; markets eye ECB, BOJ outcomes

* Won gained nearly 3 pct since July 6
* Won less likely to gain beyond 1,120 level eyeing ECB, BOJ
-analyst

SEOUL, July 19 (Reuters) – The South Korean won and
stocks were tentative on Wednesday morning as traders held their
bets amid uncertainty over economic policy in the United States
and ahead of key central bank meetings in Japan and Europe this
week.
The U.S. dollar slid as Republican efforts to overhaul or
repeal Obamacare collapsed in the U.S. Senate in a blow to
President Donald Trump’s ability to pass promised tax cuts and
infrastructure spending.
The won was quoted at 1,122.9 to the dollar as of
0201 GMT, little changed versus Tuesday’s close of 1,123.1.
“Despite the dollar’s weakness on Trump, the won is moving
in a very narrow range since it had run up too fast over a short
period,” said Jeong My-young, a foreign exchange analyst at
Samsung Futures.
The won has rallied nearly 3 percent since July 6.
Jeong expects gains beyond the 1,120 level is unlikely as
markets await the outcomes of the Bank of Japan and European
Central Bank policy meetings on Thursday.
South Korean shares were a touch lower with the Korea
Composite Stock Price Index (KOSPI) at 2,423.31 points.
Foreign investors were set to be net sellers, shedding 71.4
billion Korean won ($63.64 million) worth of KOSPI shares near
mid-session.
Market heavyweight Naver gained 1 percent while
Samsung Electronics lost nearly 1 percent.
Advancers outnumbered decliners 449 to 323.
September futures on three-year treasury bonds
gained 0.03 point to 109.23.

0201 GMT Prev close
Dollar/won 1,122.9 1,123.1
Yen/won 10.0161/23 10.0302
*KTB futures 109.23 109.20
KOSPI 2,423.31 2,426.04
* Front-month futures on three-year treasury bonds

(Reporting by Dahee Kim; Editing by Shri Navaratnam)

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