1 Month USD/KRW Close To Mid-August Highs On Equity Weakness

1 month USD/KRW topped out just above 1342 post the Asia close on Thursday, which was close to highs in the pair from mid August. We finished the NY session near 1339, a won loss of 0.59%, as broad equity losses kept the USD supported. The 20-day EMA sits back at 1327.80. Note onshore spot finished at 1339.75 yesterday.

• The local data calendar is empty today, leaving the won on headline watch and driven to some extent by broader equity trends.
• The SOX fell a further 1.76%, while the MSCI IT index lost 1.62% in Thursday trade. To recap, the Kospi fell 1.7% yesterday, while offshore investors sold -$126.5mn of local shares, bringing week to date outflows to -$691.1mn.
• Elsewhere, the authorities will ease the cap on commercial banks bond issuance and keep the liquidity coverage ratio at current levels until early next year according to local new sources (see this link).
• Discussions are also continuing for a trilateral leaders meeting between South Korea, China and Japan before year's end.