Close Change USD/KRW 1,104.60 -10.30 JPY/KRW 14.5573 -0.1260 3-Year Treasurys 3.54% +1 bp 5-Year Treasurys 3.67% +1 bp 10-Year Treasurys 3.93% unchanged 20-Year Treasurys 4.12% unchanged SEOUL (Dow Jones)--The South Korean won rose for a second day against the U.S. dollar Friday as risk appetite continued to improve, buoyed by European leaders' plan to tackle Europe's sovereign debt woes with measures including a 50% writedown on Greek debt. The dollar touched KRW1,094.50 at the local session opening--its lowest level since it was at KRW1,092.10 on Sept. 14, but soon bounced back above KRW1,100 as most investors were cautious about the Korean won's sharper gains after its robust gains in the previous session, traders said. Remaining uncertainties over details in the euro-zone debt rescue plan and dollar buying from importers also provided some support to the dollar. Despite improvement of risk sentiment, as evidenced by the won's 3.9% rise against the dollar this week, important events and data scheduled for next week suggest the currency market will likely continue to be volatile, said Byeon Ji-young, a currency analyst at Woori Futures. "Leaders of the group of 20 industrial and developing nations, in the summit late next week, are expected to discuss further measures to ease euro-zone debt worries. Investors will focus on whether the emerging economies, including China, invest in the European Financial Stability Facility." The dollar may test the KRW1,100 support again, and if that level is breached, the next support will likely be at KRW1,090, she added. Korea government bonds fell in early trade, but bargain hunting helped trim losses. "Investors were biased to sell local bonds in early trade, tracking weakness in U.S. treasurys overnight, but strong bargain interest lifted prices later," said a trader at a local bank. "The euro-zone worries have eased significantly thanks to the latest development, but skepticism remains in the pace of the economic recovery in advanced economies. With conflicting leads in the market, yields of bonds will likely stay in a narrow range for a while." He added the three-year yield is expected to move in a 3.50%-3.70% band next week. December bond futures shed seven ticks to end at 103.89, with foreigners extending their net-selling spree for the sixth consecutive session. They were net sellers of 5,208 contracts Friday. -By Jieun Shin, Dow Jones Newswires; 822-3700-1905; jieun.shin@dowjones.com

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