USD/KRW Eyeing Dec 2022 Highs Amid Equity Pressure/Yield Surge

1 month USD/KRW broke decisively higher through Friday's session. We got above 1316, before settling back around 1314 into the close. Note onshore spot ended Friday's local session at 1304.70, so the early trend today will be some catch up to the topside. The 1320-25 region (highs from Dec last year) could be eyed on the topside for the pair. This would take us through the simple 200-day MA (1319.40).

• Equity headwinds persist for the won amid the continued rebound in core yields. Both the SOX and MSCI IT finished lower last week, with both indices losing around 1.70-1.80% for Friday's session.
• To recap, the Kospi lost 0.63% on Friday, with offshore investors selling $284.6mn of local shares, bringing sales for last week to $741.7mn.
• The local data calendar is quiet until Feb trade figures print on Wed. Note the BoK will release a research note on the economic impact of the China re-opening on the South Korean economy today. Monthly data on FX deposits for Korean residents will also be released.
• Weekend news reports also stated the US met with Asian chip allies (South Korea, Taiwan and Japan) on Feb 16 to discuss supply chain issues. Export controls were reportedly not raised at the meeting per Bloomberg reports (see this link).