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USD/KRW closed at the highest levels....>

SOUTH KOREA
SOUTH KOREA: USD/KRW closed at the highest levels since mid-2017 Wednesday,
prompting bulls to nudge targets higher and up to the 1157.85 printed in July of
that year. KRW fell sharply against all others in Asia, with the spot volatility
prompting a surge in NDO volumes also: just over $5 were bought in USD/KRW call
NDOs for every $2 in puts during the Wednesday session. Call strikes at 1,165,
1,160 and as high as 1,146 were particularly popular.
- KRW remained weak overnight with markets focusing on the broader USD strength
evident over the last 24 hours, the U.S. removing the waivers re: sanctions on
purchases of Iranian crude (which South Korea benefitted from), and most
recently, the South Korean Finance Ministry formally outlining additional
budgetary measures totalling KRW6.7tn, with the aim of boosting exports,
strengthening the social safety net & creating more jobs, have all weighed on
the KRW this week.
- Clear psychological resistance is noted at KRW1,150, with a break above
opening up the 61.8% retracement of the move from KRW1,213.22 to KRW1,054.00,
located at KRW1,152.40.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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