1 Month NDF Back Close To 1225, FX Reserves Continue To Recover

1 month USD/KRW was supported post the Asia close, but couldn't get above the 1225 level. We finished NY trade just under 1224. Note the onshore spot close yesterday was 1220.35. The won didn't see much benefit from positive sentiment in the equity space, as USD indices tracked higher post the BoE/ECB decisions.

• FX reserves for Jan printed earlier, recovering further to $430bn, from $423.16bn in Dec. Valuations effects playing a role, as the DXY fell -1.38% in the month. The data calendar is now empty until next week.
• The Finance Minister has stated it will help support exports/investments. The Minister stated tech related exports won't recover until the second half. On the inflation front, near term momentum is expected to remain around 5%, but should moderate as we progress further into 2023.
• The positive equity lead for the Kospi from Wall St on Thursday has been dented by lower futures in the first part of trading today. Nasdaq futures are off by 1.3% post earning results from Apple and Amazon.
• To recap, the Kospi gained 0.78% yesterday, while offshore investors added +$625.7mn to local shares.