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USD/KRW takes another leg higher as......>

KOREAN WON
KOREAN WON: USD/KRW takes another leg higher as South Korea confirms 334 new
coronavirus cases in the country, bringing the total number of patients to 1595,
while the U.S. urged travellers to reconsider visiting South Korea. At the same
time, news wires have circulated reports re: indefinite postponement of
U.S-South Korea joint military drills. USD/KRW is close to unch. at KRW1,216.45.
- The rate has now more than retraced its earlier downswing driven by a surprise
decision from the BoK to leave rates on hold. As a reminder, the BoK also
decided to lift the ceiling of its lending facility for small cos. to KRW30tn
from KRW25tn.
- The BoK's decision obviously puts more pressure on the gov't to ramp up fiscal
stimulus amid the Covid-19 outbreak. BoK Gov Lee's comments will be under close
scrutiny, with any clues re: assessment of the impact of the virus &
distribution of votes among MPC members providing some obvious points of
interest.
- BoK's GDP & CPI outlook revisions hit at typing. Growth seen at +2.1% Y/Y in
2020 vs. the Nov forecast of +2.3%.

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