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*** USD/KRW back to near neutral.........>

KOREAN WON
KOREAN WON: *** USD/KRW back to near neutral levels at KRW1,194.75 last.
- The South Korean authorities have stepped in with verbal intervention in the
wake of various meetings to discuss FX "market volatility" (read KRW weakness)
in recent weeks. A BoK official has stated that the KRW is falling too rapidly
in a short period and that the move is excessive vs. the fundamental outlook.
The relevant authorities will be meeting again to discuss what they deem
distortion in KRW trading.
- We have highlighted the reasons for the fall before, but the South Korean
economy's sensitivity to the global trade outlook and the recent run of weakness
for the Chinese yuan are the two clearest catalysts for the latest leg higher.
- It would seem that KRW1,200 is the proverbial line in the sand for now.
- The cross has printed a high of KRW1,196.50 today.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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