Hyundai Motor falls most in three months on won

Hyundai Motor Co., South Korea's largest automaker, fell the most in more than three months in Seoul as the won rose to an 18-month high, reducing the company's earnings from exports.

Hyundai dropped 6.7 percent, the most since Jan. 5, to close at 118,000 won in Seoul. Kia Motors Corp., a Hyundai affiliate, fell 7.2 percent, the most since July 13, to 25,050 won on the biggest trading volume since Jan. 5, according to Bloomberg data.

"The stronger won is hitting investor sentiment hard today on Hyundai, Kia and other exporters," said Kim Byung Kuk, an analyst at Daishin Securities Co. in Seoul.

The won reached its highest level against the dollar in more than 18 months as South Korea's central bank raised its economic growth forecast and a European Union rescue package for Greece boosted demand for higher-yielding assets. A stronger won cuts Hyundai's and Kia's earnings from exports brought back into South Korea. Sales outside Hyundai's home market accounted for half of its revenue last year.

The won rose 0.4 percent to 1,114.13 per dollar as of the 3 p.m. close in Seoul, after reaching 1,111.38, the highest since September 16, 2008, according to data compiled by Bloomberg.

Hyundai and affiliate Kia sold a record 4.63 million vehicles last year around the world, helped by improved vehicle quality and marketing programs as the weaker won allowed them to spend more on promotions without squeezing profit.