Won Hovers Near 2021 Low

The won is holding near its 2021 low in early trade, USD/KRW last at 1147.00, 2021 highs for the pair were hit last week at 1149.95.

• There were some comments from Vice FinMin lee earlier who noted that volatility was rising in South Korean markets due to the latest wave of coronavirus, adding that the government would strengthen monitoring on markets and risk factors. South Korea reported 1,150 new cases in the past 24 hours, above 1,000 for the seventh day. South Korea set a record high for daily cases Saturday with 1,378. Tighter restrictions in Seoul and the surrounding areas were started on Monday, authorities have warned that daily cases could exceed 2,000 later this month amid a spike in the number of delta variant cases. The vaccination drive appears to have slowed, a total of 30.4% of the population have had their first inoculation, compared to 29.8% at the end of June.
• Elsewhere, there are reports that South Korea will raise minimum wage by 5.1% next year, the fastest pace of growth in three years. The increase would mean a total gain of 41.6% in the hourly minimum wage since labour-friendly President Moon took office in 2017.
• On the docket today is money supply data, while the BoK rate announcement is on the schedule for later in the week.