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KRW: Spot Back Under 1400, BoK/NPS Considering Expanding Swap Agreement

KRW
EM BulletBulletSouth KoreaAPACEmerging Market News

Spot USD/KRW sits back sub 1400, last near 1397/98. We are around 0.20% stronger in won terms for the session, with earlier highs just above 1407. This keeps us within recent ranges for the pair, albeit with won outperforming modestly so far today against other USD/Asia pairs.

  • USD/KRW spot was already off earlier highs (which came post Trump tariff headlines), when onshore new wires (Infomax) reported that the BoK and National Pension Service (NPS) are considering expanding their FX swap agreement.
  • Headlines crossed recently that the current swap agreement for $50bn, which expires at the end of this year, could be extended.
  • These agreements which help take out NPS spot USD/KRW buying (as its purchases offshore assets) are a won positive, but are unlikely to change the trend for USD/KRW. This will be more reflective of the US interest rate and trade/tariff outlook, along with  the global trade/growth backdrop. 
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Spot USD/KRW sits back sub 1400, last near 1397/98. We are around 0.20% stronger in won terms for the session, with earlier highs just above 1407. This keeps us within recent ranges for the pair, albeit with won outperforming modestly so far today against other USD/Asia pairs.

  • USD/KRW spot was already off earlier highs (which came post Trump tariff headlines), when onshore new wires (Infomax) reported that the BoK and National Pension Service (NPS) are considering expanding their FX swap agreement.
  • Headlines crossed recently that the current swap agreement for $50bn, which expires at the end of this year, could be extended.
  • These agreements which help take out NPS spot USD/KRW buying (as its purchases offshore assets) are a won positive, but are unlikely to change the trend for USD/KRW. This will be more reflective of the US interest rate and trade/tariff outlook, along with  the global trade/growth backdrop.