KRW Remains Under Pressure as Foreign Selling Persists

The South Korean Won remains under pressure due to persistent foreign selling of Korean equities and elevated US yields after the FOMC.

According to OCBC strategist Christopher Wong, large-cap technology stocks are at the centre of outflows, but the broader KOSPI has held up relatively well.

Foreign investors sold another KRW2.3tn of KOSPI shares on Thursday, taking cumulative selling to around KRW14tn over the past seven sessions.

The external backdrop has turned somewhat less negative overnight, with UST yields and the USD easing from their post-FOMC highs, while lower oil prices should also offer some relief.