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On-Going Equity Strength Keeps USD/KRW Upticks Sold

KRW

1 month USD/KRW finished the NY session just above 1241, close to session lows for Wednesday. We remain above Monday lows though, which came in just under 1235. The positive tone to offshore equities helped cap USD/KRW upside, with moves above 1248 drawing selling interest through NY trade. Onshore spot ended yesterday's session at 1246.05.

  • To recap, the Kospi gained 0.35% for yesterday's session, with offshore investors adding $146.7mn to local shares, bringing week to date net inflows to $641mn. The lead remains positive today (SOX +1.25%, MSCI IT +1.72% for Wednesday's session).
  • On the data front today, bank lending to households for Dec is due, which won't be a market mover.
  • Tomorrow the BoK decision is due, with the consensus looking for a 25bp hike, although some are calling for a pause. Our full preview will be out later today.

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