New COVID-19 Cases Highest Since January

The won is weaker in early trade, USD/KRW tracking a move higher in the greenback. The pair last changes hands at 1134.25, the highest since June 24.

• Inflation figures from South Korea showed price increases slowed in June, Y/Y prices rose 2.4% against 2.5% expected and down from a nine-year high print of 2.6% in May. On the month prices fell 0.1%, while core CPI rose above estimates at 1.5% against estimates of a 1.4% rise. This is the third straight month that prices have risen above the BoK's 2% target. Last week the BoK raised forecasts for growth and inflation, and said that while inflation may overshoot target in the short-term it will pull back as the year progresses. BoK Governor Lee has also said that the time is approaching when the Bank will begin to normalise policy.
• BoK Governor Lee had some comments crossing the wires, he said fiscal policy needs to be maintained at the current trend, and monetary policy needs to help curb financial imbalances. Lee also said he would work closely with the finance ministry to help manage the recovery.
• On the coronavirus front there were 826 new cases in the past 24 hours, the highest since January 7. Health authorities had initially planned to implement an eased distancing scheme across the country Thursday, such as raising the cap on private gatherings and extending business curfews. The recent spike, however, forced Seoul, Gyeonggi Province and Incheon to hold off on the eased scheme for one week.