SEOUL: The South Korean won eased early on Tuesday, extending the previous day's decline as investors generally avoided risky assets while a political impasse in Washington threatened to push the United States into a debt default.
The won was quoted at 1,073.8 against the dollar as of 0230 GMT, compared to Monday's close in Seoul at 1,071.5.
"We're seeing yesterday's dollar short-covering continue today," said a local bank dealer in Seoul. "Dollar sales by local exporters have mostly dried up."
The benchmark Korea Composite Stock Price Index was down half a percent early on Tuesday, further weighing on the won, with both the share market and the won hurt by broad risk-off sentiment stemming from the US fiscal standoff just 10 days from a critical deadline to raise the country's debt ceiling.
December futures on three-year treasury bonds ticked up 0.03 points to trade at 105.91, but trading was sluggish ahead of a public holiday on Wednesday and the Bank of Korea's monthly rate decision on Thursday.
The central bank is expected to keep interest rates steady at 2.50 percent this week, a Reuters poll showed.
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