Won Weaker In Risk Off Even As Virus Cases Drop

A stronger greenback and risk averse tone saw the won weaken at the open, USD/KRW has moved in a range since, last up 1.90 at 1118.40.

• South Korea's daily new coronavirus cases fell back below 600 for the first time in six days Monday mainly due to fewer tests over the weekend amid growing concerns over the fourth wave of the pandemic. The country reported 532 more COVID-19 cases in the past down 24 hours, sharply down from 672 the previous day. The daily figure hovered above 600 in the past week as people have increased their activities in spring, which could spark another wave of the pandemic. Last week, South Korea decided to maintain the current level of social distancing rules through May 2 to contain the virus, while placing more restrictions on entertainment establishments, such as nightclubs and bars. From today, operations of entertainment establishments are banned in the greater Seoul area and the southeastern port city of Busan.
• There were media reports that Finance Minister Hong, who kept his job in the latest reshuffle, could be replaced in May. Markets will look ahead to PPI data on Tuesday and export data on Wednesday.