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1 Month USD/KRW Back Above 1260, Minimum Wage To Rise 2.5% in 2024

KRW

1 month USD/KRW recovered from fresh lows post the Asia close on Tuesday. We got back to 1265 late in NY trade, before settling back at 1263 by the close. Yesterday's low was around the 1255 level. Note onshore spot ended yesterday's session at 1260.50.

  • On the geopolitical front, North Korea fired two ballistic missiles in response to a US nuclear submarine docking in South Korea (the first time in four decades this has occurred). North Korea also reportedly detained a US solider who intentionally walked across the border from the joint truce village.
  • Elsewhere, the minimum wage for 2024 was increased by 2.5% according to the Minimum Wage Commission. This is well below what unions had been asking for (a 26.9% raise).
  • The local data calendar remains quiet until Friday's PPI and first 20-days of July trade data.
  • In the equity space, the lead for local shares in positive from US/EU gains. Tech indices rose but saw less outperformance compared to the start of the week. To recap, the Kospi fell 0.43% yesterday (although the Kosdaq rose 1.76%). Offshore investors added $265.8mn to local shares.

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