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USD/KRW Holds Above 1350, President Yoon To Host Export Meeting


The won couldn't build on gains from yesterday's Asia session, largely tracking within recent ranges. Support is evident ahead of the 1350 level, while recent highs sit around 1362. The 1 month NDF finished the NY session at 1352.70, while onshore spot ended yesterday at 1356.70.

  • Earlier, the BoK survey of business showed further deterioration, particularly for manufacturing, see this link for more details. Overall, the results point to a further slowing in South Korean GDP growth.
  • The chart below overlays manufacturers' export expectations from this survey against y/y export growth. Again, the outlook suggests headwinds for external demand. South Korean President Yoon will host a meeting today to review the export backdrop for the country.
  • In terms of other drivers for the won, the equity backdrop for the Kospi is more positive today, given the SOX rose 3% overnight, while the MSCI IT gained 1.75%. HP fell after the close though, following disappointing earnings results.
  • To recap, the Kospi lost 0.59% yesterday, while offshore investors sold -$46.7mn of local shares.

Fig 1: South Korean Manufacturers' Export Expectations Soften Further

Source: MNI - Market News/Bloomberg

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