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USD/KRW Testing Fresh Highs

KRW

USD/KRW spot is breaking higher, last at 1353, fresh highs from a cyclical standpoint. Yesterday the pair opened around 1352 before moving lower. Today's headwinds reflect broadly firm USD sentiment, weaker onshore equities, with the Kospi off by 1.7% so far. Note also offshore investors have sold just under $280mn of onshore equities so far today.

  • Earlier data was generally disappointing, with the August trade deficit at record wides, export growth continued to ease, while the PMI slipped further into contraction territory.
  • We wait now to see if this move in spot evokes a response from the authorities.

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