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Strengthens From 2021 Lows

KRW

Won is stronger in early trade, USD/KRW dropping from closing highs yesterday. The pair last down 3.70 at 1189.00, the rate hit fresh 2021 highs of 1193.05 yesterday.

  • Data earlier showed South Korea posted a current account surplus for the sixteenth straight month in August as exports remained robust and revenue from cargo shipping rose amid the global economic recovery. The current account surplus narrowed slightly to $7.51bn in August from $8.21bn previously. The goods balance logged a surplus of $5.64bn in August, smaller than $5.73bn the previous month.
  • On the coronavirus front there were 2,427 new cases in the past 24 hours, staying above 2,000 again after briefly dropping following fewer tests after the holiday.
  • Markets look ahead to the BoK rate announcement next week after the Bank hiked 25bps at its previous meeting, another inflation overshoot and concerns over financial stability have flagged the October meeting as live for another hike.

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