Won Falters Amid Higher U.S. Tsy Yields, FinMin-Nominee Vows To Draw Up Extra Budget

Spot USD/KRW trades +5.30 figs at KRW1,230.80. Firmer U.S. Tsy yields have pushed the rate higher, leading to the completion of a short-term double-bottom formation. This reversal pattern bodes well for bulls, who are taking aim at Mar 15 cycle high of KRW1,244.00. Bears need a pullback under the 50-DMA at KRW1,211.01 to breathe a sigh of relief.

• USD/KRW 1-month NDF last +1.11 fig at KRW1,230.92. Topside focus falls on Mar 15 high of KRW1,247.94, while bears keep an eye on the 50-DMA at KRW1,212.49.
• President-elect Yoon unveiled eight members of his cabinet, including finance and defence chiefs. FinMin-nominee Choo pledged to draw up another extra budget in a way that would not boost inflation or put financial stability at risk. The details of the spending plan will be made public in late April/early May.
• South Korea's daily average exports rose 17.7% Y/Y in the first 10 days of the month, with imports up 12.8%. Chip shipments grew 14.2%.
• South Korea's latest jobs data will be published on Wednesday, with the unemployment rate expected to have ticked higher to 3.0% last month.
• The Bank of Korea will hold a monetary policy meeting on Thursday but policymakers are expected to keep the 7-Day Repo Rate unchanged.
• Gov-nominee Rhee pointed to the need to curb household debt growth and said the central bank should use "rate signals" to that effect. Note that he will not take office in time to participate in this week's policy meeting.