USDKRW trades roughly flat on the day at......>

KOREA: USDKRW trades roughly flat on the day at 1127.1, shrugging off the

weakness seen in Korean stocks which are down over 1%. The pair remains in the

center of its multi-month range.

- KRWJPY is consolidating its recent drop below its 200-dma but remains above

the Nov 13 low at 9.961. A close below here would potentially trigger renewed

sell pressure particularly as the real interest rate backdrop remains bearish

for the won. 

- Rate markets continue to trade in lackluster fashion with the 2-year swap flat

at 1.8638%, with declining inflation expectations keeping upside pressure on

real yields and making a BOK rate hike at month-end increasingly unlikely. 

- PPI came in at 2.2% in Oct vs 2.7% in Sep thanks in part to the recent drop in

crude. Q3 household credit data is due tomorrow and it would likely take a large

spike to warrant a hawkish shift by the BOK.