With the coronavirus pandemic decreasing in South Korea, could one amongst Asia’s worst-performing currencies turn everything around within the final quarter of 2020?
Industrial output fell by 0.7% in August, falling from the 1.9% increase in July. The annual rate fell 3%, more rigid than the market estimation of 2.8%. Manufacturing production also contracted by 3.1% in August, dropping from the previous month’s 2.2% drop. Construction output fell at 9.4% year-over-year.
Retail sales did shock market watchers, rising 3% in August, up from the 6% reduction in July.
The Bank of Korea ‘s Business Survey Index rose slightly month-to-month, stretching from 66 in July to 68 in August
This was the first extensive reading since January, and it worked the fourth continuous monthly increase. It should be mentioned that business conditions at non-manufacturing businesses descended from 66 to 62.
This week, trade data and the manufacturing acquiring managers’ index (PMI) will be published for September. Analysts predict a 2% gain in exports and a 4.9% reduction in imports. They’re also anticipating the PMI reading to remain in recession territory.
After some fear that South Korea would return to another lockdown among growing COVID-19 cases, the state flattened the curve once again. The number of latest infections has diminished to double digits, directing the overall to more than 23,000.
The benchmark KOSPI Composite Index has failed to gain much traction over the
previous month, slumping near 1% in September. It did end Tuesday’s trading session up 0.86% to end at 2,327.89.
The South Korean bond market was different. The benchmark ten-year yield bound up 0.4 basis point to 1.43%, the two-year bond slipped 0.8 basis point to 0.792%, and hence the ultra-long 50-year bond dropped 0.7 basis point to 1.605%.
The USD/KRW currency pair was kept at 1,167.37 at 14:06 GMT on Tuesday. The EUR/KRW increased 0.57% to 1,369.80, from an opening of 1,361.77.