USD/KRW Tracks Recent Ranges

1 month USD/KRW found selling interest closer to 1310 overnight. We finished around the 1304.50 level, on slightly better equity sentiment in offshore markets. Note spot closed yesterday at 1306.6.

• Earlier, the South Korean current account for May printed at $3.86bn, a marked improvement from -$79.3mn in April. This owes to sharp turnaround in the net income investment balance (as April is a strong month for dividend related outflows to offshore investors).
• The data calendar is empty for the rest of this week, with focus to rest on broader risk appetite.
• The overnight tech equity lead was once again slightly firmer, with the SOX index up 0.66%, while the MSCI IT index gained 0.86%. These gains were stronger than broader US equity gains.
• The Kospi was down over 2% yesterday though, with offshore investors selling $72mn in local shares.
• Also note Samsung's Q2 profit result was slightly below expectations, at 14T won, versus a 14.6T won estimate.
• We will also watch today for any negative spill-over from higher USD/JPY levels to the won, given the sharp rebound in US yields overnight.