Won Pairs Extends Losses

The won has opened higher on Monday, USD/KRW dropped to session lows into the close on Friday and has extended those losses in early Asia trade – the pair last down 1.15 at 1104.65.

• Bears need a break of Feb 18 low at 1103.55, which brings last week's low of 1097.25 into focus. The 2021 low, which was rejected several times in December is at 1080.
• Data showed South Korea's exports rose at the fastest pace in two years in the first 20 days of February, the increase is attributed to the global recovery picking up steam and robust demand for electronic chips.
• Exports rose 16.7% in the period, daily shipments gained 29.2%, semiconductor sales rose 27.5%. It should be noted that the survey period had 1.5 fewer working days than in 2020 due to the shifting dates of LNY. Imports rose 24.1%.
• Markets await clarification on extra budgets from the government, there is speculation the budget will be between KRW 12tn and KRW 20tn, the amounts floated by the ruling democratic party and the finance ministry respectively.