The won strengthened 6.8 won from the previous session to close daytime trading at 1,385.8 per dollar, compared with Thursday's 1,392.6.
Exporter dollar selling and broader weakness in the U.S. currency continued to support the won after it broke below 1,400 earlier this week.
The currency has strengthened even as U.S. long-term yields rise, reflecting growing concern that higher Treasury yields are being driven by fiscal and debt-supply risks rather than stronger U.S. growth.
South Korean government bonds weakened, with the three-year yield rising 4.3 basis points to 3.854 percent and the 10-year yield climbing 5.3 basis points to 4.376 percent.
The selloff followed a rebound in U.S. Treasury yields after an initial rally triggered by the Treasury Department's expanded long-bond buyback program faded within a day.
The larger increase in the country's 10-year yield reflected greater sensitivity at the long end to the global bond selloff.
Domestic conditions offered some support to shorter maturities, with producer prices falling 0.4 percent month on month in July for the first decline in 11 months, while the stronger won eased imported inflation pressure.
Those factors have also reduced pressure on the Bank of Korea to move quickly after raising its benchmark rate to 2.75 percent last month, with its next rate decision due Aug. 27.
Friday's trading left Korean markets reflecting two sides of the same U.S. fiscal concern — a weaker dollar supporting the won while higher Treasury term premiums pushed Korean bond yields upward.
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