Close Change USD/KRW 1,145.60 +5.10 JPY/KRW 14.9070 +0.1145 3-Year Treasurys 3.45% -1 bp 5-Year Treasurys 3.59% -1 bp 10-Year Treasurys 3.84% unchanged 20-Year Treasurys 4.03% unchanged SEOUL (Dow Jones)--The South Korean won fell against the U.S. dollar late Tuesday as risk appetite faded after comments from German Chancellor Angela Merkel and Finance Minister Wolfgang Schaeuble Monday, indicated that euro-zone leaders may not be able to provide a definitive solution to the bloc's sovereign debt crisis at a European Union summit this weekend. Losses in local shares also negatively affected sentiment toward the local currency, although consistent demand from exporters provided some support for the unit, traders said. The Korea Composite Stock Price Index, or Kospi, snapped an eight-session winning spree and ended 1.4% lower at 1,838.90 Tuesday. China's third-quarter gross domestic product growth, which came in slightly below a forecast of analysts polled by Dow Jones Newswires, briefly added to the won's weakness, but it didn't spur strong dollar gains as investors believe the pace of China's growth remains healthy, traders said. Unless there are any more negative developments from Europe, "the dollar is expected to head lower (against the won) again in the near term, though its losses may be limited until the final resolutions on the European debt crisis are released at the Oct. 23 E.U. summit and the (Group of 20 industrialized and developing nations) summit meeting next week," said Lee Dae-ho, a foreign-exchange analyst at Hyundai Futures Corporation. He expects the dollar to move within KRW1,130 to KRW1,170 this week. Korean government bonds ended mostly flat as some investors took profit from their earlier gains, traders said. "Investors seem to be unsure of the future direction of bond yields and changed their positions swiftly," said a bond trader at a local bank. Until a clearer picture emerges from the E.U. summit, yields will likely move sideways, he said. The trader tipped the three-year yield to move in a range of 3.40% to 3.50% this week. December bond futures rose four ticks to 104.20. -By Jieun Shin, Dow Jones Newswires; 822-3700-1905; jieun.shin@dowjones.com

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