1 Month USD/KRW Above 1340, Manufacturing Sentiment Eases

1 month USD/KRW ended the NY session on Tuesday just under 1342, a won loss of nearly 0.30%. This largely unwound the gains seen for Monday's session. Onshore spot finished up at 1339.55 in onshore Tuesday trade.

• The won was weighed down in NY Tuesday trade by a softer equity backdrop. We saw tech related indices down for the second straight session, the MSCI IT off 0.62%, the SOX down 0.80%. Broader US equity indices were down, while the USD gravitated higher, with yen losses also weighing on the won at the margins.
• To recap, the Kospi rose 0.71% yesterday to 2757, not far off recent cyclical highs. Offshore investors added $516.5mn to local shares, but this isn't driving positive won sentiment at this stage.
• Elevated USD levels, including renewed USD/CNY upside and USD/JPY close to cyclical highs, is working the other way. Recent highs in the 1month NDF around 1345 remain intact. Focus in April is likely to shift to negative seasonality in the month, as dividend outflows ramp up.
• On the data front we have already had Apr Bok business sentiment readings. Manufacturing fell to 73 from 75 prior. Non-manufacturing eased to 69 from 70. For manufacturing we are still above early 2023 lows.
• The data calendar is quiet now until Friday.