Won Close To 2021 Lows

Won is weaker at the open, USD/KRW gapping higher and last up 5.15 at 1182.00. The 2021 high at 1186.35 was hit last week. Stocks have opened lower, denting risk sentiment, taking a negative lead from the US.

• On the coronavirus front there were 2,289 new cases in the past 24 hours, above 2,000 for the third day. Health authorities will decide whether to extend the current distancing rules on Friday.
• Data earlier showed consumer confidence rose to 103.8 in September from 102.5 in August. The rise came even amid a jump in coronavirus infections, daily new infections have stayed above 1,000 for more than two months.
• Elsewhere markets continue to digest comments from FSC chairman Koh yesterday that there will be additional measures next month to curb household debts. Koh said that household debt was the biggest potential risk to South Korea's economy.
• On the geopolitical front there were reports that North Korea launched another missile into the East Sea though there has been little knock-on effect so far. It follows news yesterday that North Korea remained unresponsive to South Korea's calls via liaison and military hotlines.
• Meanwhile, the BoK said yesterday that last month's reported unemployment rate of 2.8% could have been as high as 3.7% when taking discouraged workers into account. Unemployment data for September will be published on October 13, the day after the BoK rate announcement.