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Forex - Flows - USD/KRW sprints near close; GS Construction - Perdaman
Written by article default Wednesday, 17 November 2010 13:04
Acute dollar squeeze in USD/KRW evident near close as prices were bid to 1144.6 highs from sub-1135 start to the session, with suspected BoK purchases triggering latest bout of short-covering. Whippy Kospi moves, closing at -0.11% while EUR waffled around 1.35 handle. Expectations of capital controls, kickstarted by a likely re-instatement of withholding tax on foreign bond holdings will keep bears on short-leash, with 1146 the initial tech barrier ahead of 1148.50. S Korea's GS Construction won KRW 3.2trn (USD 2.82bn) order to build to fertilizer plant in Western Australia, Perdaman Chemicals and Fertilisers; timeframe for the investment was not available; deal expected to weigh on AUD/KRW at margin.