1 Month USD/KRW Consolidates Above 1340, Authorities Warn On Excessive FX Moves

1 month USD/KRW got to highs just above 1348 post the Asia close on Wednesday. We ended the NY session near 1343, a won loss of just under 0.50%. Note onshore spot closed yesterday at 1344.35.

• The FX authorities stated late yesterday that won losses were somewhat excessive, per BBG (see this link for more details).
• This follows the very sharp move in the pair after breaking above the 1320 region. Whilst broader USD sentiment remains quite positive, such a warning could create more two-way price action in the pair, particularly if we move into the 1350/60 region, which marked highs from Oct/early Nov last year.
• The local data calendar is quiet today, with first 20-days of Jan trade data out early next week.
• In the equity space, the SOX fell 0.88%, the MSCI IT off 0.57% in Wednesday trade, amid broader equity losses, as US yields continued to recover.
• To recap, the Kospi slumped nearly 2.5% yesterday, with negative spill over from HK and China market losses. Offshore investors sold just over $801mn of local shares.