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

KOREAN WON
KOREAN WON: USDKRW continues to trade in a tight range around the 1130 level,
currently at 1129.5, around the centre of its recent range. The won is holding
up in the face of renewed widening in US-Korea 2-year interest rate swap spreads
which currently trade just off cycle highs at 116.5bps.
- The recent pullback in Korean CDS spreads has provided some support for the
won, as has the collapse in oil prices which has seen Korean breakevens plunge
in recent weeks, keeping upside pressure on real yields even as nominal yields
drop. 
- As a major net energy importer the fall in oil is much more beneficial for the
Korean economy compared to the US. 

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