Won Finds Stabilisation, Participants Weigh Covid Risks

Spot USD/KRW has reversed its initial gain and last changes hands at KRW1,192.50, less than 1 fig lower on the day. The rate printed a fresh multi-week high earlier today, but struggled to hold onto those gains amid the reassessment of the global Covid-19 situation. Bears need further losses past the 50-DMA at KRW1,181.40 to bring Nov 16 low of KRW1,175.50 into play. Bulls see Oct 12 cycle high of KRW1,200.35 as their key near-term target.

• USD/KRW 1-month NDF last seen at KRW1,193.60, ~3 figs lower on the day. Bearish focus falls on the 50-DMA at KRW1,184.03, while bulls look to a rebound above Oct 12 cycle high of KRW1,201.63.
• South Korea has banned inbound flights from eight African countries amid concerns over the Omicron variant. At home, critical cases hit another record high. Pres Moon will hold a meeting at 14:00 local time to assess the Covid-19 situation, with ministers set to hold a briefing once they wrap up.
• Vice FinMin Lee said that South Korea will monitor local and global financial markets on a 24h basis, keeping an eye on the impact of the Omicron variant. The gov't will review market stabilisation measures and stands ready to act pre-emptively and aggressively.
• Local highlights this week include retail sales (today), industrial output (Tuesday), trade balance (Wednesday) as well as CPI & final GDP (Thursday).