Gets Battered After FinMin Hong Raises His Eyebrows At Currency Strength

Spot USD/KRW is stabilising after rallying in early trade, in a dynamic push away from the fresh 29-month low printed yesterday. Broader risk aversion combined with continued jawboning from South Korean MoF has propelled the move. The rate last changes hands +8.60 fig. at KRW1,112.50.

• South Korea ratcheted up its jawboning, taking it to ministerial level. Before onshore markets re-opened, FinMin Hong flagged mounting concerns over KRW appreciation and noted that excessive volatility "isn't desirable". Hong pledged readiness to take active measures to stabilise the FX markets "at any time", pointing to the won's rapid, "one-sided" rise since the end of Sep.
• Worry over the local coronavirus situation remains, with South Korea adding 343 new cases today. The tighter social distancing guidelines have been implemented in greater Seoul area & the city of Gwangju, starting today.
• Bulls look for further gains past Nov 13 high of KRW1,116.70, which would shift focus to the 50-DMA/Nov 4 high at KRW1,146.74/1,147.50. Bears need a dip through Nov 18 low of KRW1,103.90 before taking aim at the psychological KRW1,100.00 figure.
• South Korea's PPI will be published tomorrow, with early trade data coming up right after the weekend.