USDKRW has opened slightly weaker........>

KOREAN WON: USDKRW has opened slightly weaker today and is trading at 1119.5,

back below its 55-dma, helped by the rise in global risk appetite which has seen

the Kospi open up ~0.8%. With EURUSD continuing to rally and the yuan stable,

this provides room for the won to appreciate and a close below the 55-dma would

return the focus to the downside in USDKRW. 

- Korean interest rate swaps recovered some of their losses yesterday with the

2-year trading at 1.8450%, and a further rally would support won gains. However,

rates remain near multi-year lows vs the US. Such a wide gap is likely to

prevent the won from recovering strongly, particularly as real yields are also

higher in the US.