Better Equity Trends Aiding KRW, But We Remain Within Recent Ranges

1 month USD/KRW is down slightly from NY closing levels in early Thursday trade. The pair last in the 1324/25 region, around 0.20% stronger in won terms. Spot is also a little lower, last just under 1327. It was a fairly uneventful post Asia close for the 1 month NDF yesterday, with a rough 1323/1328 range.

• Broader ranges for USD/KRW remain intact as we approach the LNY holiday period. Earlier lows from yesterday under1321 remained intact, while beyond that rests 1318.7 from early in Feb. Upside resistance is likely on probes back towards 1340. Note, onshore markets are closed Friday and Monday.
• The early impetus for local stocks is higher, the Kospi last +0.50%, the Kosdaq up +1%. This follows a positive equity lead from US markets, with tech related indices outperforming. Also note President Yoon stated in a television interview late yesterday that the so-called Korean discount must be reduced for the financial sector (see this BBG link).
• Offshore investors added +$442.5mn to local stocks yesterday, bringing week to date flows to $717.9mn.
• On the geopolitical front, North Korea has scraped laws on inter-Korean economic cooperation (Yonhap). This is a further sign of deteriorating relations.