Close Change USD/KRW 1,154.00 +7.10 JPY/KRW 14.8139 +0.0457 3-Year Treasurys 3.35% -1 bp 5-Year Treasurys 3.50% -2 bps 10-Year Treasurys 3.80% -1 bp 20-Year Treasurys 4.00% -1 bp SEOUL (Dow Jones)--The South Korean won was lower against the U.S. dollar late Tuesday as worries persist over possible downgrades for euro-zone nations by ratings firms unimpressed with the outcome of the recently concluded European Union summit. Fitch Ratings said Tuesday that growth of major advanced economies is expected to remain weak at 1.2% in 2012, dragged down by the economic malaise in the euro zone. Moody's Investors Service said Monday that the latest EU meeting had few new measures to tackle the region's debt crisis. It has placed eight Spanish banks on review for possible downgrades. As investors avoided risk assets in New York overnight, the dollar rose to KRW1,163.00 in early Asian trade Tuesday--its highest since it touched KRW1,164.80 on Nov. 25. Traders said exporters' selling of the greenback capped the unit from rising further. "The market remains jittery as the latest EU pact presented long-term measures for fiscal reforms, but no immediate action plan to block euro-zone debt contagion risks," said Jung Kyung-parl, a currency analyst at KEB Futures. He expects the dollar to remain firm against other risk currencies, "but gains will likely be limited as possible sovereign ratings downgrades of European countries are largely priced in." Jung tipped the dollar to move between KRW1,135 and KRW1,165 this week. Korean government bonds were slightly higher as worries over a potential downgrade of European sovereign debt boosted sentiment for safe-haven local treasurys. Traders, however, expect the bond market to remain rangebound for the rest of the month. "Downside risks in the global economy would normally weigh on local bond yields, but there is limited downside as the central bank has not shown any intention to cut the policy rate in the near future," said a local brokerage trader. "Many investors are also closing their books for the year, and that would further minimize market volatility," the trader said. Analysts said yield for three-year bonds is expected to trade in a 3.30%-3.50% range for the rest of the month. December bond futures ended seven ticks higher at 104.56. -By Jieun Shin, Dow Jones Newswires; 822-3700-1905; jieun.shin@dowjones.com

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