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1 Month USD/KRW Holds Above 1320, Govt Presents 2024 Fiscal Proposal Today

KRW

1 month USD/KRW finished the Monday NY session at 1322.10, little changed on Friday's 1322.60 closing level. The post Asia close saw a move up to 1325 but this drew selling interest, while we didn't get back down to earlier session lows of 1317 from Monday. Note onshore spot ended yesterday at 1323.30.

  • The local data calendar remains empty until tomorrow when retail sales/department store sales are due for July.
  • The government will unveil its 2024 budget proposal today, with the Finance Minister stating that fiscal soundness will be the basis for next year's proposal.
  • This is likely to leave the won driven by broader risk appetite sentiment. The SOX rose +1.2% in Monday US trade, the MSCI IT +0.90%, with these indices modestly outperforming broader equity trends as US yields edged lower.
  • To recap, the Kospi climbed +0.96% yesterday, with offshore investors adding +$70mn local shares.

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