USD/KRW has ebbed off highs, trades......>

KOREAN WON: USD/KRW has ebbed off highs, trades +5.25 fig. at KRW1,212.55. KRW

is the worst performer in Asia, but slightly better risk appetite limits losses.

- USD/KRW gapped higher at the open as local mkts absorbed the escalation in

S.Korea-Japan tensions; yesterday Seoul pulled out of a bilateral intelligence

sharing pact (GSOMIA). A softer than exp. PBoC fix & comments from S. Korean

FinMin Hong added further weight to the won, pushing the rate higher.

- Hong said that S. Korea won't change it's GDP est., but it's become harder to

meet the forecast. He noted potential for preemptive & stern steps if mkt

volatility rises & opined that Japan's position on the spat hasn't changed much.

- N. Korea's chief diplomat Ri lashed out at his U.S. counterpart Pompeo,

calling him a "poisonous plant." He said that North Korea will remain "America'

biggest threat" as long as the U.S. keeps using sanctions vs. Pyongyang.

- Bulls look to the Aug 12/7 highs at KRW1,216.95/1,217.00. A break would open

the KRW1,200.00 mark. Bears eye a retreat below the Aug 16 low of KRW1,209.90.

- Friday's BoK MonPol decision headlines South Korean docket next week. Also due

are cons. conf. (Tuesday), biz. survey (Thursday) and industrial output (Friday)