Won Strengthens as Domestic Stocks Hit Record Highs

KRW: The Korean won strengthened against the US dollar as South Korean shares jumped more than 1% to a record high on Wednesday, as COVID-19 vaccine related progress and hopes of further U.S. stimulus aided recovery hopes, while an upbeat domestic chip industry outlook also boosted sentiment.

• USD/KRW last down 0.17% at 1101.50, but off session lows of 1100.30.
• Data yesterday showed the South Korea's economy continued its rebound from a pandemic slump, with exports and manufacturing activity rising in November. Consumer prices rose 0.6% YoY in November, picking up speed after a sharp slowdown in October.
• Bank of Korea projections call for inflation to average 0.5% this year and rise to 1.0% in 2021, BoK Governor Lee Ju-yeol said last week the central bank would maintain its accommodative monpol until it was clear the economy was back on track, though the recent data indicate the economy is indeed on the road to recovery