Korean Won Resumes Losses Amid Cautious Sentiment

Spot USD/KRW operates at KRW1,427.70, up ~3 figs on the day, as risk aversion bites after the won's rally yesterday. Bullish focus falls on KRW1,442.15, which capped gains on Sep 28. Bears look for losses past Oct 6 low of KRW1,397.45.

• USD/KRW 1-month NDF last seen at KRW1,427.29, up ~2.5 figs on the day. On the topside, the key near-term resistance is provided by Sep 28 high of KRW1,446.08. Bears see Oct 6 low of KRW1,396.85 as their initial target.
• South Korean officials vowed to take steps to stabilise stock and bond markets after the BoK raised its key policy rate by 50bp yesterday. The central bank justified its return to a faster pace of tightening with the need to contain inflation and prop up the currency.
• Equity benchmarks softened across the board post-Asia, albeit losses in U.S. indices were fairly modest. South Korean equities falter on that lead, with KOSPI last -0.3% & KOSDAQ -1.0%.
• Geopolitical concerns resurfaced this morning as North Korean state media reported that Kim Jong-un supervised test-launches of two long-range cruise missiles by the nation's tactical nuclear units.
• Vice FinMin Bang holds a meeting to review markets and economy this morning, while South Korea's terms of trade and unemployment will be published this Friday.