USD/KRW opened slightly higher,..........>

KOREAN WON: USD/KRW opened slightly higher, supported by the broadly cautious

mood inspired by the weekend escalation of Mideast geopolitical tensions, but

has pared gains since. Combative gestures and rhetoric from U.S. and Iranian

leaders, Tehran's decision to end nuclear enrichment limits, and Iraqi

parliament's resolution calling for the withdrawal of U.S. forces from the

country are among the factors which keep risk appetite limited.

- Geopolitical tensions took their toll on KRW on Friday, when U.S. drones took

down a powerful Iranian military commander. USD/KRW added 8.80 fig., moving

further away from a multi-month low printed the day before.

- The rate now trades flat at KRW1,167.15. Bulls look for a break above the

38.2% retracement of the Dec 4 - Jan 2 sell-off at KRW1,169.85. Taking out the

level would expose the 50-DMA at KRW1,171.23. Meanwhile, bears focus on the

psychological KRW1,160.00 level and below there would encourage them to target

the low of Dec 23 at KRW 1,157.97.

- South Korean BoP data, due tomorrow, headlines the local docket this week.