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USDKRW continues to trade weak, albeit...>

KOREAN WON
KOREAN WON: USDKRW continues to trade weak, albeit off its daily lows, even as
USDCNH rises to daily highs. the pair currently trades at 1119.70 as the
correlation between USDKRW and USDCNH weakens. 
- The 2-week rolling correlation has fallen to just 0.43 after being as high as
0.88 last week as the won continues its long term outperformance against Asian
and EM FX in general. 
- The major driver behind the won's strength has been the decline in default
risk facing the country as shown by the 10-year CDS hitting a new post-financial
crisis low today. This has helped keep risk-adjusted real yields from falling
even as interest rate expectations have fallen. 

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