May 12, 2022 23:50 GMT
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.