Firms, But Still Wedged Between 20 & 50 Day EMA, FX Reforms Announced

1 month USD/KRW has mostly tracked lower since the start of the session. We got to 1251.50, but sit slightly higher now, last close to 1253. Supports from higher equities (+0.60% for the Kospi), which have shrugged off a negative tech lead from US markets, has helped, as has a weaker USD trend elsewhere, most notably against JPY and CNH.

• More broadly the 1 month NDF is wedged between the 20 (1241.26) & 50 (1268.7) day EMAs for now.
• Elsewhere, the authorities will allow certain offshore firms to participate in the local FX market (to some degree - i.e. spot and swaps allowed, but not derivatives initially), while lengthening won trading hours to 24 hours eventually (after initially to 2am). The changes will be implemented by the H2 2024, after a 6 month trial period (see this link for more details).
• These moves are designed to increase foreign participation and investment in Korean assets. Note also the Vice Finance Minister is meeting with FTSE Russel officials on Wednesday to discuss Korean inclusion in the WGBI.