MNI BRIEF:Eurogroup Chair Sees France, EU Paring `25 Borrowing

RPT-MNI INTERVIEW: BOC Rate Cuts Justified: Ex Adviser Ambler

MNI: ECB LEAVES KEY DEPOSIT RATE UNCHANGED AT 4%

MNI China Daily Summary: Thursday, April 11

MNI BRIEF: EU Risks Damaging Trust With China - MOFCOM

MNI BRIEF: China Small Lenders To Cut Deposit Rates Further

MNI: FED BALANCE SHEET TOTAL ASSETS -$1.4B TO $7.438T IN WEEK

MNI: USDA: 2023/2024 CORN PRODUCTION EST 15.34B BSL

US EIA:NAT GAS STORAGE +24 BCF TO 2,283 BCF APR 05 WK

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

MNI BRIEF: Lawmakers Signal Tough Hearing For BOC's Macklem

© 1982-2023 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Bank Of America Highlights Link Between VIX & KRW Foreign Outflows

KRW
  • The won has weakened around 4.12% since the start of June as the nation battles with the latest wave of coronavirus. Some of the weakness is attributed to foreign outflows. Bank of America notes the link between the VIX and outflows: global volatility, as proxy by the VIX Index, has spiked on a number of days. Although the VIX has structurally moved lower throughout 2021, we find that the change, rather than the outright level, in the VIX matters for net portfolio flows to Korea." They find "there is a strong inverse correlation between upward movement in the VIX and portfolio outflows in Korea."
  • They note "an unexpected increase in US real rates will lead to a rise in market uncertainty, which in turn will spill over into portfolio outflows from Korea and result in a higher USDKRW. With the US real 10y re-approaching its YTD low, at -100bp, overall market liquidity remains flushed, and this should help contain market volatility (using the VIX index as the proxy) and be supportive for portfolio risks, Korean inflows and a lower USDKRW. We expect this condition to remain until the Fed clarifies on the timing of its tapering."
BulletEM BulletEmerging Market NewsHomepage
BulletEM BulletEmerging Market NewsHomepage

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.