USD/KRW Edges Higher, Moves Further Away From Multi-Month Lows

Spot USD/KRW has continued to move away from the multi-month low printed a week ago, albeit somewhat reluctantly given that the DXY has ebbed lower. The rate last sits +1.40 fig. at KRW1,173.90.

• South Korean FinMin Hong noted that the economic growth is poised to rebound in Q3, but was quick to add that a flare-up in new coronavirus infections could considerably limit the pace of expansion. Hong said that the gov't will make efforts to boost recovery in exports.
• As a reminder, South Korea begins its elongated weekend on Wednesday. The government has implemented enhanced social distancing rules until Oct 11 to contain the spread of Covid-19 during the vacations.
• Elsewhere, South Korean PM Chung called for a swift launch of inter-Korean probe into the recent killing of a South Korean fisheries official by North Korean soldiers. As a reminder, in a somewhat surprising gesture, DPRK Leader Kim issued a formal apology to Seoul over the incident.
• Continued gains past the 50-DMA at KRW1,185.09 would bring Sep 4 high of KRW1,192.75 into view. On the flip side, a pullback under Sep 21 low of KRW1,157.15 is needed to reinstate the broader downtrend.
• The BoK will publish its monthly Business Survey tomorrow, just two hours before the release of South Korean industrial output. Trade data for the month of Sep is due Thursday.