Won Strengthens Even As Coronavirus Cases Hit Record

The won is stronger, USD/KRW down 2.20 at 1148.35 and retreating from a 2021 high set in yesterday's session.

• On the coronavirus front South Korea reported a record high daily case tally of 1,784. The government had warned previously that case numbers could peak at around 2,000 per day around mid-August before dropping back. For the first time since the state of the fourth wave regions outside the capital area reported over 500 cases
• Data earlier showed PPI rose 6.4% in June from a revised 6.6% in May, the eighth straight month of gains. The rise was attributed to industrial goods prices. CPI also remained elevated in June which has underscored rate hike expectations.
• Other data showed that exports remain strong in July, rising 32.8% in the first 20 days after a 29.5% rise in June. Imports rose 46.1% after a 29.1% rise in the first 20 days of June. The rise was attributed to robust demand for chips, autos and petroleum products
• Elsewhere, Finance Minister Hong said elevated house prices could ensure a correction in the coming months, and said the government will put policy priority on expanding the supply of residential properties in a bid to curb speculative demand for homes.