1 Month USD/KRW sub 1310, FinMin Expects Export Growth To Improve

1 month USD/KRW pulled back sharply during NY trade on Thursday, as the USD/yields fell more broadly. We finished the NY session close to 1311, a won gain of 0.66% for Thursday's session. Early won gains has pushed us sub 1310 today. Note spot closed at 1321.60 onshore on Thursday, but has gaped lower in early trade today, last in the 1311/12 region.

• Focus is likely to rest on whether the 1 month NDF can test May lows around 1306.
• The Kospi has opened 0.70-0.80% higher, with positive spill over from tech related gains in US trade, with the SOX and the MCSI tech index both above 1%.
• Offshore investors added $42mn to local equities yesterday, bringing week to date inflows to $917mn.
• Earlier, on the data front CPI pressures continued to ease in terms of headline, as did core, but such pressures remain elevated from an historical standpoint (see this link for more details).
• The FinMin has stated today the export growth is expected to improve going forward, with fewer working days impacting the May print. He added that the worst is behind us in terms of chip exports and shipments to China.