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USD/KRW 1 Month Back To Monday Highs, As Equity Correction Continues

KRW

Earlier dips in USD/KRW have been supported, as renewed equity weakness remains in focus. The 1 month NDF got to 1335, versus earlier lows of 1326/27. We have settled somewhat now, back at 1332/33. Still 1335 is right on yesterday's highs.

  • The negative spill over is evident from weakness in HK/China equities particularly in the tech space. The Kospi is down over 1.1%, while offshore investors have sold -$89mn in local stocks so far today.
  • Note as well earlier comments from the South Korean FSS Governor stating concerns over the Kosdaq overheating and excessive leverage for investments. This index is down over 2.2% so far today, having lost nearly 9% from its recent peak.

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