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1 Month USD/KRW Drifts Higher, Tech Equities Soften

KRW

1 month USD/KRW was mostly range bound post the Asia close on Wednesday. Moves to 1267 drew selling interest, and we finished up at 1265.65, a won loss of 0.21% for the session. Onshore spot finished close by at 1265.75 yesterday.

  • Won likely saw some modest selling pressure on account of broader USD gains, with both USD/CNH and USD/JPY pushing higher. At the same time, tech related equities underperformed through Wednesday US trade, the MSCI IT off by 0.21%, the SOX down by 1.06%. US futures have started off weaker in the tech space this morning, with the Nasdaq down over 0.60%, with weaker Netflix sentiment weighing post the company's earnings results.
  • To recap, South Korea shares finished a touch higher yesterday in terms of the Kospi, while offshore investors sold -$69.8mn of local shares.
  • In the geopolitical space, South Korea, Japan and the US plan to hold a leader's summit in the US on August 18.
  • Locally, the data calendar is quiet until tomorrow when the PPI and first 20-days trade data for July is due.
  • Today the Finance Ministry releases the monthly government issuance plan (5pm local time). The Financial Supervisory Service is also meeting with brokers to discuss property exposures and risk management practices.

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