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Market Eyes 2020 Highs Just Under 1300

KRW

The USD/KRW 1 month NDF held above 1290 for much of post-Asia trading, with dips below this level supported. Spot won dipped over 1% vs. the USD yesterday (USD/KRW spot closed at 1288.50).

  • The break above 6.8000 in USD/CNH didn't help won sentiment, with USD/KRW's beta close to 1 with respect to USD/CNH moves.
  • Negative spill over from China's covid situation, (Beijing denied the city was heading into a lockdown), and major developer Sunac's default can weigh today.
  • JPY/KRW also surged, up 2.2%, as yen shorts were unwound across the board.
  • Net equity outflows persist, with a further $268mn in net outflows yesterday, bringing week to date outflows to $871mn.
  • Locally, new President Yoon Suk Yeol will hold a meeting with BoK Governor Rhee Chang-yong and Finance Minister Choo Kyung-ho to review the economy and financial markets.
  • Inflation concerns are likely to be the main focus, a point underscored by import price data released earlier today. YoY is still at +35%, although the MoM print did register a small fall.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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