USDKRW stuck to a tight range today trading...>

KOREA: USDKRW stuck to a tight range today trading either side of the 1125 level

after early gains, with yesterday's failure to break back below 1120 keeping the

focus on the upside. The divergence between USDKRW and implied vol continues to

widen.

- KRWJPY trade just off yesterday's highs as the choppy recovery continues

despite the continued divergence in real yield spreads between Korea and Japan. 

- 10 year bond futures have headed slightly lower in sympathy with global trends

amid increased trade optimism after headlines noted a possible 60 day extension

to the trade tariff deadline. This has also helped the Kospi rise to fresh cycle

highs. 

- South Korea's presidential office has begun preparing plans for a possible

visit by North Korean leader Kim Jong Un to the South around end-March or early

April, DongA Ilbo newspaper reports, citing unidentified government sources. 

- Money supply data came out mixed with m/m growth in L rising from 0.2% to 0.5%

and m/m growth in M2 falling from 0.5% to 0.3%. Y/y growth remained flat near

two year highs at 6.8%