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Won Extends Losses After BoK Decision, USD Strength

KRW

The dust has settled after the BoK hiked their benchmark interest rate by 25bp on Thursday, with spot USD/KRW catching a bid on the back of rhetoric pointing to accommodative policy environment and gradual tightening outlook, which came alongside one dissenting vote for leaving the rate on hold.

  • Spot USD/KRW last sits +2.70 figs at KRW1,173.15, with bulls keeping an eye on Aug 20 cycle high of KRW1,181.10. Bears look for a sell-off past yesterday's low of KRW1,163.50 towards the 50-DMA at KRW1,148.76.
  • USD/KRW 1-month NDF last seen +2.35 figs at KRW1,173.55. Topside focus falls on Aug 20 cycle high of KRW1,184.78, while the next downside target is provided by Aug 25 low of KRW1,163.78.
  • Lawmakers will quiz ex-BoK board member & FSC Chair nominee Koh Seungbeom during a parliamentary hearing today.
  • South Korean economic docket for next week includes industrial output (Tuesday), trade balance & Markit M'fing PMI (Wednesday) as well as monthly CPI & final Q2 GDP (Thursday).

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