Free Trial

Won Weakens For Second Session


The won is on track to weaken for a second session, USD/KRW last up 2.30 at 1099.50 having earlier rejected resistance at 1101 in a similar pattern to yesterday.

  • As a note, USD/KRW calls have been in high demand so far this week, while $1.35bn of puts roll of this week between 1080 and 1110.
  • Foreign funds purchased a net $30.4m in bonds on Friday according to latest data, and were net sellers of equities to the tune of $625.1m yesterday. The KOSPI is lower again on Tuesday after a marked reversal of fortunes on Monday. South Korea plans to lift a short selling ban on March 16. The ban was enacted at the start of the pandemic.
  • South Korea continues to assess coronavirus measures, the latest headlines crossing the wires state the government will review social distancing measures on Jan 16. The number of new cases remains around 500, possibly indicating a flattening of the curve.
  • 10-Year future is lower, down 0.35 at 129.72, just above session lows. Cash yields are mixed, the short end seeing some selling after a 3-year auction yesterday, 10-year yield down 2.1bps at 1.314%.
  • Money supply and import/export price data will be released tomorrow, but focus is on the Bank of Korea rate announcement on Friday; the central bank are expected to keep rates on hold at 0.50%.

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.