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Tech Weakness Curbs Won Rebound, FTSE Puts South Korea On WGBI Watch List

KRW

1 month USD/KRW didn't see as much downside as implied by USD weakness seen against some of the majors overnight. The pair dipped to 1426, but we closed in NY just above 1429. Onshore spot ended yesterday at 1439. Broad ranges of 1420 to 1440 may continue to dictate sentiment in the pair.

  • Overnight equity market weakness, particularly in the tech space, likely curbed won gains. The SOX fell over 3% overnight, the MSCI IT was down 2.57%.
  • This comes after the Kospi ended close to flat yesterday. Offshore investors added $250.4mn to local shares though.
  • FTSE also announced that South Korea has been added to the watch list for inclusion in the WGBI, a move which could lure fresh inflows into the local bond market.
  • On the data front, headline IP figures came out close to expectations (+1.0% y/y), but the detail showed chip production falling by 1.8% y/y, the first decline since 2018. The cyclical leading index came in at -0.2, around recent ranges.
  • Later today, Q2 FX intervention data will be released (4pm local time).
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1 month USD/KRW didn't see as much downside as implied by USD weakness seen against some of the majors overnight. The pair dipped to 1426, but we closed in NY just above 1429. Onshore spot ended yesterday at 1439. Broad ranges of 1420 to 1440 may continue to dictate sentiment in the pair.

  • Overnight equity market weakness, particularly in the tech space, likely curbed won gains. The SOX fell over 3% overnight, the MSCI IT was down 2.57%.
  • This comes after the Kospi ended close to flat yesterday. Offshore investors added $250.4mn to local shares though.
  • FTSE also announced that South Korea has been added to the watch list for inclusion in the WGBI, a move which could lure fresh inflows into the local bond market.
  • On the data front, headline IP figures came out close to expectations (+1.0% y/y), but the detail showed chip production falling by 1.8% y/y, the first decline since 2018. The cyclical leading index came in at -0.2, around recent ranges.
  • Later today, Q2 FX intervention data will be released (4pm local time).