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1 Month USD/KRW Makes Fresh Highs Near 1344, Before Paring Gains

KRW

1 month USD/KRW got to fresh highs in NY trade, near 1344, before pulling back to 1337.50 by the close. Onshore spot ended yesterday at 1337.95. Firmer US yields (post some Q1 inflation data beats), along with higher USD/JPY levels, worked against the won, but better tech equity sentiment provided some offset.

  • We have already had data out, with Mar IP stronger than expected at 5.1% m/m (+0.4% was the forecast), for y/y we were -7.6% against a -10.2% forecast. The Mar cyclical leading index was -0.3, unchanged from the Feb print.
  • Note today the FSS will hold a meeting with the heads of local brokerages, with the focus likely to be on strengthening risk management on retail investors. This comes after overheating concerns were aired from the FSS chair earlier in the week.
  • President Yoon's speech to the Joint Session of Congress in the US focused on strengthening US-South Korea-Japan trilateral security to counter the North Korea nuclear threat (see the full text of the speech here).
  • The equity lead is positive again for South Korean shares, the MSCI IT up nearly 1.80%, the SOX +0.64%. To recap, the Kosdaq recovered strongly yesterday, up 2.38%, while the Kospi rose 0.44%. Offshore investors added $253mn to local shares.

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