Won Retraces Early Strength

The won was stronger at the open, but initial strength has quickly given way in the face of a stronger greenback. USD/KRW last up 2.75 at 1131.40, after opening the session at 1126.65. At these levels the rate is bumping up against its 200-day moving average at 1132.28 and is not far from matching its highest levels since late March. The 2021 high is around 1142. The 50-day moving average waits below at 1124.66.

• South Korea reported 619 daily new coronavirus cases, staying in the 600s for the third consecutive day Monday, as infections from private gatherings, schools and military bases continued amid little progress in vaccinations. South Korea started its vaccination program on Feb. 26, but its inoculation drive has been making little progress amid the tight supply of vaccines. The country earlier announced its bold plan to vaccinate 13 million people by June and achieve herd immunity by November. South Korea is making efforts to keep the daily figure below 1,000 through end-June while speeding up inoculations of seniors
• Elsewhere, stocks in South Korea are higher, there were reports that short selling by foreigners fell to lowest levels since the ban was lifted on Friday, selling KRW 350bn, around half the amount sold when the ban was initially lifted at the start of May.