New Coronavirus Cases Remain Elevated

The won is stronger in early trade, USD/KRW dropping 3.80 to 1131.05 as the rate plays catch up with the greenback's lower finish on Friday. The pair has moved in a range from 1125 to 1140 since mid-June.

• Coronavirus case numbers jumped in the past few days, hitting a six-month high on Friday and staying above 700 since. There were 711 cases in the past 24 hours. The rise meant the government reversed a decision to relax mask rules in the capital Seoul. The health authority said masks remain compulsory for everyone, including those who have been vaccinated, in the city and its surrounding areas because of the recent rise in cases. The government had announced in May that it would lift its mask mandate for people outdoors if they have been inoculated. The government are taking other measures and started restricting the entry of Korean passengers from Indonesia starting Sunday unless they present documents that prove they tested negative for COVID-19. The health ministry said it will decide whether to maintain the current distancing rules or adjust them on July 7.
• Elsewhere, data earlier showed South Korea's foreign reserves declined in June as strength USD reduced the value of non-dollar assets. Foreign reserves fell $2.35bn in June to $454.1bn.