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USDKRW continues to trade in a...........>

KOREAN WON
KOREAN WON: USDKRW continues to trade in a contracting range around the 1121
level as both implied volatility and risk reversals close in on range lows
reflecting improving confidence in won stability. KRWJPY is showing much more
action with the pair breaking out of range highs in NY trading to extend the
recovery off the Jan 3 lows. CNHKRW has edged back from recent highs after last
week's bullish break, with the 200-dma now acting as support. 
- Swap rates are seeing some upside pressure with the 2-year adding 1bp to hone
in on the key 1.80% level. This comes as breakevens have continued to fall over
recent days, supporting real rates.

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