- USD/KRW falls further from 3-week tops despite S. Korea’s awful GDP data
- US dollar pullback from two-week highs adds to the downside.
- South’s third stimulus plan likely underpins the domestic currency.
USD/KRW falls further from three-week highs reached at 1,241.23 reached earlier this week, as the South Korean won is on a recovery mode despite the bearish fundamentals.
The spot quickly faded a spike to 1,236.64 highs despite the South’s Q1 GDP having dropped by 1.4% q-q, the worst contraction since Q4 2008.
The downtick in USD/KRW could be also associated with the broad-based US dollar retreat from two-week highs, as the risk tone improved in Asia amid lockdown easing hopes worldwide.
Meanwhile, the won could be also benefiting from the third economic stimulus package announced by President Moon Jae-In on Wednesday. Moon said the government will increase policy financing rescue package to 135 trillion won, from 100 trillion won.
At the time of writing, USD//KRW sheds 0.10% to trade near 1,232, as the focus now shifts towards the US Jobless Claims data due later this Thursday.
South Korean won: Levels to watch