USDKRW is up around 0.1% on the day......>

KOREAN WON: USDKRW is up around 0.1% on the day trading at 1115.0 as the

recovery from Tuesday's closing low continues. The won weakness over the past

two days has been driven by global risk aversion which has seen Korean CDS

spreads tick higher and the Kospi come under renewed downside pressure amid a

pick up in foreign investor outflows. 

- US-Korea real yield spreads have continued to edge back from their all-time

highs thanks in part to the ongoing weakness in oil prices which has send Korean

breakevens lower, supporting real yields. However, USDKRW is still trading far

below fair value based on real yield spreads between the two countries,

suggesting upside risks in the event of further global risk aversion or a

reversal in oil prices.

- Korea's current account figures were released today and show continued

strength despite a slight drop in the trade surplus.