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USDKRW trades at its daily highs at......>

KOREAN WON
KOREAN WON: USDKRW trades at its daily highs at 1126.50 after the strong open
set the bullish tone. A break above the Sep 11 high of 1130.55 would allow bulls
to target the key Aug 14 high at 1138.55.
- The won's weakness is coming in spite of higher interest rate swaps and a
continued decline in CDS spreads, both of which are fundamentally positive for
the currency. However, they are being overshadowed by the ongoing rise in the
short end of the US yield curve which is keeping US-Korea nominal and real
yields firmly in the USD's favour. 

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