Broad based dollar weakness has seen.....>

KOREAN WON: Broad based dollar weakness has seen USDKRW drop back into its

sideways trend, undermining the bullish break earlier this week. The pair sits

at 1125.65, with bears now targeting the 1120 level to gain the upper hand. Won

strength has not allowed KRWJPY to break out as the pair remains stuck in its

sideways trading pattern. 

- All eyes are on the BOK rate meeting later today which looks set to see the

BOK maintain its current policy rate of 1.75%, but potential downgrade its

growth and inflation forecasts.

- The  6 month interest rate swap has stuck to a tight range over the past few

months even as the 2 year swap has moved lower, with the curve inverting as a

result. The still-wide US-Korea rate differential suggests the won remains at

risk in the absence of a hawkish shift by the BOK.