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Limited Market Reaction So Far, KRW Following Equity Sentiment

BOK

As widely expected the BoK delivered a 50bps hike. This is the first time the BoK has hiked by 50bps, while the policy rate is now at its highest levels since mid-2014. Market reaction has been limited. USD/KRW is following broader USD and equity sentiment. The pair pushed above 1309 in early trade, but we are now back to 1305 in terms of the 1 month NDF. Equities have rebounded, following a strong open from Taiwan's market, which is activating its stock stabilization fund. Korea bond futures rallied to session highs post the BoK announcement. The 10yr got to +35 ticks, just under 114, which is around highs from yesterday.

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