SEOUL: The South Korean won was little changed to hover near a 34-month high against the dollar early on Tuesday, after its recent bull run sent the dollar/won pair to an oversold level.
Trade was lethargic after ratings agency Standard & Poor's warned it would treat a French bank plan for a rollover of Greek debt as a default, casting new uncertainty over euro zone efforts to rescue debt-crippled Greece.
The won was quoted at 1,064.20/70 per dollar, compared with Monday's local close of 1,063.5.
It hit as high as 1,062.7 on Monday, the strongest level since late August 2008.
The 14-day Relative Strength Index had moved below the oversold threshold of 30 in the previous two sessions, with the won gaining 2.4 percent in the past week through Monday.
Treasury bond futures firmed up, led by domestic institutional investors betting on no aggressive rate hikes by the Bank of Korea (BOK) and plenty of demand for fixed-income assets.
"We do not expect the BOK to speed up its rate-hike schedule, given that the government and monetary authorities expect CPI growth to drop and stabilise from the middle of the second half," Samsung Securities said in a note.
The Bank of Korea's monetary policy committee is set to convene its monthly rate-setting meeting on July 14.
Three-year treasury futures for September delivery gained 0.05 points to 103.08.
Copyright Reuters, 2011
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