BoK Rate Decision Headlines

Spot USD/KRW has eased off from yesterday's highs and last deals -1.65 fig at KRW1,433.75, as we await the Bank of Korea's rate review. Initial bearish focus is on KRW1,397.45 which limited losses on Oct 6, while bulls look for a jump above Sep 28 cycle high of KRW1,442.15.

• USD/KRW 1-month NDF last at KRW1,432.59, almost 2 figs better off. Bulls keep an eye on Sep 28 high of KRW1,446.08, while bears look for a dip through Oct 6 low of KRW1,396.85.
• Local equity benchmarks are mixed in early trade, with KOSPI last -0.14% & KOSDAQ +0.13%. Both registered losses on Tuesday amid broad risk-off tone.
• Regional geopolitical tensions keep brewing amid fears that North Korea could escalate its recent missile tests.
• Most analysts expect the BoK to raise the key policy rate by 50bp at today's meeting (click here to see our full preview), while a minority of 3/19 in a Bloomberg suvey calls for a 25bp hike. Renewed hawkishness around the Fed outlook and domestic emphasis on curtailing inflation will likely nudge the central bank towards a larger move. The announcement is expected between 9:40am-10:00am local time, with the statement coming up at 10:30am and a presser with Gov Rhee slated for 11:10am.
• Looking further afield, South Korean jobs data will be out this Friday.