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USD/KRW Above 200-DMA

KRW

USD/KRW is marginally higher but has already given back the majority of its opening gains, USD/KRW last up 0.40 at 1135.20. The rate is now the highest since early March, and within 10 points of the 2021 high at 1145.20. The pair is now above its 200-day moving average at 1131.97, the first time since July 2020. The KOSPI is higher in early trade after posting losses for the fifth straight session yesterday.

  • South Korea reported 528 daily new coronavirus cases on Tuesday, back below 600 on fewer tests over the weekend, but health authorities remained alert over a potential hike amid continued cluster inflections and spreading variant cases.
  • Elsewhere the US will provide up to 80 million doses of COVID-19 vaccines to other countries by the end of next month, President Biden said Monday, reiterating his pledge to turn his country into an "arsenal" of vaccines for the entire world. South Korea currently facing a temporary shortage of vaccines with most of its purchased shipments scheduled to start arriving later in the year, it is unclear if South Korea will be a recipient of US vaccines. South Korean President Moon Jae-in is set to visit Washington this week for his in-person summit with Biden on Friday.
  • There are no domestic releases on the docket today, as a reminder South Korean markets are closed for a holiday tomorrow. Upon their return on Wednesday PPI data will be released, while export data is on the slate for later this week.

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