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USD/KRW Eyes KRW 1,200

KRW

The KRW has traded on the backfoot in early Seoul dealing, with the latest North Korean missile launch weighing on both the currency and KOSPI. The latter has also struggled in the wake of tech sector weakness on Tuesday, with the downtick in the KOSPI likely weighing on the KRW.

  • Note that yesterday’s focus fell on comments from the South Korean ruling party’s Presidential candidate, as he pointed to the potential for the compilation of a supplementary budget by the end of the month (which could be as large as KRW30tn). This didn’t have much impact on the KRW during Seoul trade.
  • In terms of levels, USD/KRW trades ~3 figures higher, printing KRW 1,197.35, with focus squarely on KRW1,200. Note that there is some market speculation that Korean authorities could step in to limit KRW weakness around this psychological level. The October ’21 high (KRW1,200.35) provides the initial technical resistance point, with any break there set to expose the July ’20 high (KRW1,207.75).
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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