USDKRW is respecting.....................>

KOREAN WON: USDKRW is respecting support-turned-resistance at around 1060, with

today's current a/c data showing pointing to a continuation off the healthy

external picture suggesting KRW strength is not significantly undermining export

competitiveness.

- With the major rally in US stocks & rise in bond yields seen yesterday, USDJPY

rallied strongly and is testing a key resistance level at 107.00. As a result,

KRWJPY has pushed higher and given the significantly more positive fundamental

backdrop for the KRW, particularly in terms of the ability of policymakers to

hike interest rates, further gains seem likely.

- Korea's inflation-linked 10-year bond yield is one of the highest among its

developed market peers at 181bps, compared with -57bps for Japan. The spread is

at a record wide (in the KRW's favour) which suggests that from a total return

perspective the KRW will continue its long-term outperformance.