USDKRW continues to edge higher, pressures....>

KOREA: USDKRW continues to edge higher, pressures by the still-wide real

interest rate spread between the US and South Korea. The pair currently trades

slightly off yesterday's highs at 1,109.50, not showing much of a reaction to

the news that Fitch has reaffirmed its debt rating for the country. 

- The rating agency reaffirmed Korea's government debt rating and its long-term

foreign currency issuer default rating at AA- with a stable outlook. The agency

noted Korea's sovereign ratings balance robust external finances with strong

macro performance, despite long-term ongoing geopolitical risk with North Korea

as well as the threat of a trade war between the US and China. 

- The pair will continue to be driven by external factors such as news flow

surrounding US-China trade tensions and US interest rate expectations, with the

BOK unlikely to make any major changes to its current slightly hawkish stance.