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USD/KRW making fresh highs in early trade

KRW

Headwinds still persist for the Korean currency.

  • USD/KRW 1 month NDF is opening around 1283 this morning, spot is slightly below this level. Yesterday spot closed around 1275, while the1 month NDF finished the NY session around 1280.
  • Yesterday we saw continued foreign equity selling, $235mn, bringing week to date sales to just over $600mn. Today could be another challenging one for sentiment, following weaker leads from US shares and US listed China tech stocks overnight.
  • Local wires report the new government plans to scrap stock capital gains tax for most share holders. However, the proposal still has to pass parliament.
  • Risk reversals remain elevated, the 1 month at 1.51 and 3 month at 1.81, but both are below March highs and as we noted yesterday are well below 2020 peaks.
  • The South Korean finance ministry again reiterated yesterday that it stands ready to stabilize markets, but resolve around FX levels could be tested further.
  • There isn't much in the way of local data to note on Thursday, with just money supply figures on tap.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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