1 Month Edges Back Above 1330, NIIP Rises In 2023

1 month USD/KRW tracked modestly higher post the Asia close on Tuesday. We ended the NY session near 1331, a very modest won loss. This is close to where onshore spot ended yesterday's session, (1331.15).

• 1 month USD/KRW remains comfortably within recent ranges. Tuesday's drift higher was in line with a firmer US yield backdrop (with USD/JPY also recovering during US trade). This offset a modestly positive equity tone, although key tech indices were mixed. The SOX down slightly, the MSCI IT up modestly.
• To recap, the Kospi finished down 0.83% yesterday, while offshore investors were a touch positive at +$14.1mn.
• US yields have spent much of Feb tracking higher, as Fed easing expectations get pushed out. This has provided a meaningful offset for a generally positive local and tech equity backdrop for the won.
• The local data calendar is empty until Friday's Feb trade figures are out.
• Yesterday, the BOK released details for South Korea's net international investment position for 2023 (see this link). The NIIP was up $8.5bn, with Korean outbound investment +$188.4bn for the year, offsetting a $109.9bn rise in investment in Korea. Outbound Korea investment was dominated by portfolio equity flows (+$104.2bn).