PM Kim Sees No Possibility Of Another Cash Handout Scheme Now

Spot USD/KRW has gone bid in the wake of yesterday's upswing in the greenback. The rate sits +6.25 figs at KRW1,180.65, with bulls looking for a break above Oct 18 high of KRW1,188.40, followed by Oct 12 high of KRW1,200.35. Conversely, a dip through Oct 26 low of KRW1,164.05 would bring the 100-DMA at KRW1,158.11 into view.

• USD/KRW 1-month NDF last seen +2.15 figs at KRW1,181.84. Topside focus falls on Oct 18 high located at KRW1,189.22, ahead of Oct 12 high of KRW1,201.63. Bears look for a sell-off past Oct 26 low/100-DMA at KRW1,165.03/1,162.79.
• PM Kim downplayed potential for implementing a universal cash handout programme proposed by ruling party presidential candidate Lee. The Premier noted that the priority should be compensating small businesses affected by the pandemic.
• The minutes from the BoK's most recent monetary policy meeting showed that majority of policymakers agreed on the need to keep hiking interest rates but disagreed on timing.
• Looking ahead, South Korea's BoP current account balance will be published on Friday.