March 14, 2023 02:29 GMT
1 Month USD/KRW Back Above 1300, Offshore Investors Sell Local Shares
1 month USD/KRW is back above 1300, with the pair around +0.60% above NY closing levels (near 1294). Once again, a dip below the 1300 level has not proven sustainable in the pair, although we are only just back above this level (last 1301.80). Spot sits slightly higher near 1305.
- Outside of the recovery in US yields, onshore equity market weakness is noticeable. Kospi losses were around 2.3% at one stage, but we are now back to -1.8%, with higher US futures likely helping at the margin. Still, the Kospi is below all key EMAs. The chart below overlays 1 month USD/KRW (which is inverted on the chart) against the Kospi.
- At this stage offshore investors have sold -$441mn of local shares today. March to date is now back to net outflows for the month.
Fig 1: USD/KRW (Inverted) & Kospi Trends
Source: MNI - Market News/Bloomberg
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