USD/KRW Within Touching Distance From Cycle Lows, Losses Cushioned By MoF Rhetoric

Spot USD/KRW has traded sideways after re-opening slightly shy of neutral levels, with South Korea's jawboning cushioning the impact of yesterday's news re: Moderna's Covid-19 vaccine. The rate last deals at KRW1,107.10, 1.90 fig. worse off & holding yesterday's range.

• The MoF has shown an increasing concern with the exchange rate, gradually ratcheting up their rhetoric. Officials warned yesterday that the recent FX moves are excessive and they are ready to take aggressive steps to ensure market stability.
• South Korean health authorities raised the level of social distancing restrictions in the Greater Seoul area by one notch, to 1.5 from 1.0, as the nationwide daily case count continued to hover above 200.
• Bears would be pleased by a dip through KRW1,105.25/1,104.95, which represent yesterday's/Dec 4, 2018 lows. A move through these figures would open up the key KRW1,100.00 level, beyond which (per analysts speaking to BBG) the competitiveness of South Korean exports could come under threat. Bulls look for a rally above Nov 13 high of KRW1,116.70 before targeting Nov 4 high of KRW1,147.50.
• South Korean PPI comes out Friday, with early trade data for this month awaited after the weekend.