Won Strengthens As Coronavirus Cases Drop

The won has strengthened on Tuesday, USD/KRW last down 3.15 at 1133.15. The pair is now some way from its 2021 lows at around 1082, since the return from LNY the rate has finished higher in 15 of the previous 21 sessions. Some of the opening gap still haven't been closed around 11136, above which bulls target yesterday's high of 1138.25. and then the psychological figure of 1140. Bears will target the March 12 low at 1127.65.

• The won was weaker yesterday, which coincided with foreign outflows from equities and slower pace of bond buying; equities saw net selling to the tune of KRW 760m, while bonds saw net buying of KRW 548m, a 17% drop from the previous day.
• The gain for the won today comes as new coronavirus cases drop. South Korea reported 382 daily new infections, in the 300s for the second day, as health authorities plan to unveil another set of restrictions in the greater Seoul area to sharply flatten the virus curve. South Korean President Moon Jae-in and first lady will get AstraZeneca vaccine on March 23, in plenty of time to attend G-7 summit in June. Over 602,000 people in South Korea have now had the vaccine.