The South Korean won ended slightly higher against the U.S. dollar on Tuesday, snapping a four-session losing streak that sent the currency tumbling to a five-year low in the previous session.

The local currency, which weakened against the greenback in morning trade, recouped its losses to close up 2.8 won against the greenback at 1,200.9 won.

On Monday, the local currency sank to the lowest level in more than five years in tandem with growing demand for safer assets amid lingering uncertainties about China and a much-awaited rate hike in the U.S.

The won's drop was also affected by a big takeover deal involving Tesco Plc.'s Korean unit. The British retailer agreed to sell its local unit Homeplus to a consortium led by Seoul-based private equity firm MBK Partners for $6.1 billion, the largest buyout deal in South Korea. (Yonhap)