SEOUL: The South Korean won was nearly flat in early domestic trade on Monday, trapped in a relatively narrow band in the absence of major cues as investors monitored the latest news on the US government shutdown and debt ceiling negotiations.
The local currency was quoted at 1,072.3 against the dollar as of 0210 GMT, compared with Friday's domestic closing level of 1,071.4.
The US Senate continued to negotiate ending the fiscal crisis over the weekend but it remained uncertain if and when a deal may be reached to avoid a debt default, leaving investors cautious despite some optimism that the US will manage to avoid a default.
But foreigners continued to buy local stocks, lending support to the local currency. The won remains an outperformer in Asia, as the country's firm economic fundamentals have set it apart from some of the more troubled countries in the region.
"There isn't anything to trigger a rebound for the dollar at this point, but there isn't much momentum to push the won higher, either," a local bank dealer said, adding that the market will likely remain rangebound for the rest of the day.
The benchmark Korea Composite Stock Price Index was down 0.1 percent at 2,023.61.
December futures on three-year treasury bonds were down 0.03 points at 105.74, giving up most of its gains from Friday on continued uncertainties over the US debt ceiling and government budget negotiations.
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