Rise In Consumer Confidence Can't Stem Won Weakness

The won is weaker in early trade, if USD/KRW finishes higher today it will be the 11^th higher close in the last 13 sessions. The rate last changes hands at 1137.85, up 0.20 on the session, within touching distance of the 2021 high at 1145.20.

• Data earlier in the session showed consumer rose to 110.3 from 105.2 in May. The figure has risen for six consecutive months as exports showed signs of a strong recovery amid progress in COVID-19 vaccinations. The subindex for people's assessment of current economic conditions was unchanged at 93 in June, while the future economic conditions index reached 99 this month, up from 97 in May.
• On the coronavirus front there were 610 new cases in the past 24 hours, down slightly from the 645 yesterday which denoted a two-week high. The case numbers above 600 are likely to give officials a headache over whether to go ahead with easing social distancing rules in July.
• As a reminder the finance ministry said yesterday that the upcoming extra budget could be KRW 30tn, if approved this would be the sixth supplementary budget of the pandemic and the second in 2021. The package would be one of the biggest fiscal undertakings since the pandemic and is double the previous supplementary budget from earlier this year.