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USD/KRW 1 Month Off Recent Highs, BoK In Focus Today, No Change Expected

KRW

1 month USD/KRW finished the NY session around the 1301.50 region, slightly lower versus yesterday's onshore spot close, which was near 1305. The 1 month NDF had a fairly narrow range post the Asia close, although a dip to 1297.50 wasn't sustained. The main focus today is the BoK meeting.

  • The market expects no change in the policy rate (currently 3.50%), which is also our expectation. The door is likely to be left ajar for further tightening, see our full preview here for more details.
  • Elsewhere the authorities met with FX dealers late yesterday to discuss recent won weakness and recent FX reforms (extended trading hours etc) announced by the government.
  • In the equity space, Tech related indices were lower again on Tuesday, but losses were much more modest compared to the previous session. To recap, the Kospi shed 1.7% yesterday, with offshore investors selling -$380.3mn of local stocks.
  • On the data front, the PPI for Jan eased back to +5.1% y/y, from a revised +5.8% y/y in Dec.

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