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Spot USD/KRW Sees Selling Interest Above 1337 Again

KRW

Spot USD/KRW sits below earlier highs, the pair again seeing selling interest above 1337, similar highs to Wednesday's session. We last tracked near 1333. The 1 month NDF is close to 1331, slightly below NY closing levels from Wednesday.

  • Some retracement in USD/JPY after earlier getting close to 147.90 earlier has helped won sentiment, although USD/CNH remains elevated (last near 7.3240).
  • Local equities are down ~0.80% at this stage for the Kospi, with further offshore selling evident (-$94.9mn in outflows).
  • Earlier the Finance Ministry stated it has issued yen-denominated FX stabilization bonds worth ¥70bn (which is just under 500mn USD). This is the first time such bonds have been sold to Japanese Institutional investors and were done across 3,5,7 and 10yr maturities. The proceeds will be used to bolster FX reserves but also signal improved ties between South Korea and Japan.

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