INSIDE KOREA: Won Falls; BOK Repeats Pledge to Stabilize Markets
Source: BFW (Bloomberg First Word)
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UUID: 7947283
(Bloomberg) -- Won drops in line with major currencies amid broad dollar strength driven by rising U.S. yields.
Alert: HALISTER1- BOK is monitoring financial markets with caution and will take steps to stabilize markets if there is a risk volatility will spread, governor Lee Ju-yeol says
- PPI -0.2% y/y in October vs -1.1% in September
- Yield on 1.875% govt bond due June 2026 up 5bps to 2.14%
- If U.S. 10-year bond yields move into higher range in 2017, Korean yields may also have an accelerated increase based on historical patterns; in past decade, median zone for spread between Korea and U.S. is 100-200bps vs -15bps now; chart here
- Won slides 0.5% to 1,182.43 per dollar following 0.6% drop yesterday
- USD/KRW approaching 5-month high
- Resistance: 1,188.50, June 27 high; 1,198.05, May 31 high
- Support: 1,153.35, 200-DMA; 1,128.55, 100-DMA
Source: BFW (Bloomberg First Word)
To de-activate this alert, click here
UUID: 7947283