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KRW 1 Month Recorded Its Firstly Weekly Gain In August

KRW

1 month USD/KRW tracked within recent ranges post the Asia close on Friday. Moves above 1328 drew selling interest, but we couldn't sustain dips sub 1320. We finished up near 1322.60, a won gain of 0.27% for the session, and for the week 1.15% stronger, the first weekly gain of August. Recent lows in the pair at ~1316 remain intact for now. Note onshore spot ended Friday's local session at 1325.

  • Support for USD/KRW came from higher USD/JPY levels, which made fresh 2023 highs on Friday (aided by a firmer US yield backdrop at the front end), while a firmer equity tone worked the other way.
  • The SOX rose 0.41% on Friday, the MSCI IT index +0.55%, with both indices higher for last week. To recap, the Kospi lost 0.73% on Friday, but remained above the 2500 level.
  • Offshore investors sold -$99.6mn of local shares, but inflows for the week were still positive at +$291.7mn.
  • The local data calendar just has local retail/department store sales in the first part of this week. On Thursday IP figures are due, then Friday delivers August trade data.

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