BoK Ready To Stabilise Market If Needed

The won has fallen to the lowest since May as the greenback strengthens post-FOMC. USD/KRW gapped higher at the open, last up 12.05 at 1129.10, the rate hurdled its 50-, 100- and 200-DMA in doing so. 2021 highs are within touching distance at 1145.20.

• BoK Senior Deputy Gov Lee said the BoK plans to take measures to stabilise markets if necessary, predicting volatility may rise due to changes in policy expectations over economic and inflation situations around the world, especially the US.
• Elsewhere, South Korea reported 540 new coronavirus cases in the past 24 hours, over 500 for the second day. Health authorities are set to announce the vaccination plan for the next quarter that centres on people aged under 60 and priority groups.
• Meanwhile South Korea and the United States have agreed to extend their US$60bn currency swap agreement by another three months through Dec. 31, which was signed to help ease market uncertainties caused by the pandemic.
• FinMin Hong addressed the housing market shortage earlier, he said the supply of homes is expected to increase after 2022 as the construction of new properties has increased since May.