USDKRW is trading back below 1135 as.....>

KOREAN WON: USDKRW is trading back below 1135 as global risk appetite has

improved, keeping the pair within its multi-month range. This comes even as the

Kospi's rebound from yesterday's multi-year lows has been relatively weak,

particularly relative to the rebound in US stocks. 

- 2-year interest rate swap spreads between the US and Korea have edged lower,

currently at 112bps, which has eased some of the upside pressure on the pair,

but real yields remain firmly in the USD's favour suggesting further medium-term

gains.

- KRWJPY found support yesterday ahead of range lows at 9.80, keeping the

short-term range intact, even as real yield spreads continue to favour yen

outperformance.