USD/KRW Back Close to Cyclical Highs, As Tech Sentiment Falters

1 month USD/KRW got close to 1315 overnight, although we didn't breach earlier July highs. We settled back at 1310.60 for the close, while onshore spot ended yesterday at 1303.90. Spot USD/KRW will play catch up to the topside in early trade today.

• Much like elsewhere, won sentiment was dented by the continued surge in the USD. Equity sentiment was also weaker, particularly in the tech space. The SOX fell by nearly 2.50%, the MSCI IT 1.6%. The China Golden Dragon Index also lost over 7%.
• To recap, the Kospi fell by 0.44% yesterday, with offshore investors unloading just over $100mn in local shares. For July as a whole, we have seen a modest -$92.7mn in net outflows.
• The data calendar has bank lending to households and money supply figures due later. Neither release will impact sentiment. Tomorrow's BoK decision will remain the focus, with a 50bps hike expected.
• Note the South Korean finance minister has briefed the South Korea President on the country's bid to be included in the World Government Bond Index (WGBI).
• We will also be mindful of official rhetoric around FX market levels today, although with the DXY above 108.0, won weakness is very much in line with broader trends.