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Won Unwinds Some Overnight Gains on Lower Equities

KRW

1 month USD/KRW is seeing some recovery in early trade today, with the pair back to 1263, around 0.30% above NY closing levels.

  • We spent yesterday's post Asian close trending lower, in line with the USD/CNH move and firmer equity market sentiment. We closed sub 1260, the lowest since early May.
  • The Kospi has opened modestly weaker, in line with lower US tech futures following Snap's disappointing guidance. Equity futures are away from worst levels though.
  • Yesterday saw foreign net equity outflows of -$74mn, despite better local equity market performance.
  • Earlier today, South Korean consumer confidence eased back to 102.6 from 103.8. Confidence remains broadly in a range and is still well above 2020 lows.
  • Tomorrow delivers household credit data and manufacturing and non-manufacturing sentiment readings, but the main focus will be Thursday's BoK decision, with a 25bps hike widely expected.

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