DOLLAR-WON: USD/KRW had a look at KRW1,170...........>

DOLLAR-WON: USD/KRW had a look at KRW1,170 overnight but failed to break below,

as the pair struggled on the back of broader USD weakness post-Powell, rate

closed onshore trade at KRW 1173.50, still 8 figures lower on the day.

- Participants likely took solace from the confirmation of the impending meeting

between South Korean & Japanese policymakers (scheduled for tomorrow), although

this is likely misplaced, with Japan seemingly holding a relatively hard line on

the matter. On the upside local reports have suggested that South Korea has made

a fresh proposal re: compensation surrounding the historical issues that the

trade spat is based on.

- South Korea's ruling government has confirmed that it will issue a

supplementary KRW300bn budget to support firms hampered by the matter.

- Meanwhile South Korean exports for the first 10 days of July fell 2.6% Y/Y,

while chip exports for the same period fell by 25% Y/Y.

- Rate sits in no mans land at the moment, well above medium term trend support,

but well shy of YtD highs.