1 Month USD/KRW Rebounds From Low 1370 Region, Authorities Monitoring FX Market

From the low 1370 region the 1 month USD/KRW NDF rebounded post the Asia close on Thursday. By the US session were back near 1380, before closing near 1378.5, close to unchanged versus end Wednesday levels. Note onshore spot finished up yesterday at 1373.1.

• Headwinds for the won came from a broader recovery in USD sentiment, aided by higher US yields (+3 to +6bps firmer). Comments from the Fed's Williams were deemed hawkish although the market may have overreacted. He stressed that he sees no urgency in pressing the Fed toward cutting interest rates, and that policy is in a "good place."
• Elsewhere, we had a negative session for US equities, with tech related indices underperforming. The SOX was down 1.66%, the MSCI IT off nearly 0.80%.
• Still such trends didn't prevent a solid rebound in the Kospi yesterday, up nearly 2%, while offshore investors added $604.3mn to local shares.
• Local media (Yonhap) quoted FinMin Choi as stating that the authorities are 'thoroughly' monitoring the FX market and have plans in place. For the 1 month NDF, focus on the downside will be back towards 1360 (note the 20-day EMA is near 1362). Upside focus rests at 1400.