USD/AXY: Remains under quite heavy selling pressure
The main flows have been in USD/KRW, with the Bank of Korea reportedly buying around USD 1 billion over the last 24 hours to try and slow down the fall. The BOK were unsurprisingly reported to have been buying EUR/USD near the overnight lows at 1.3020, diversifying out of their dollar purchases. I haven’t read any reports to confirm this, but I would not be surprised if they also sold USD/JPY, as the recent moves in JPY/KRW will be worrying them.
The USD has opened mildly softer across the board in Asia but dealers say its more about chasing stops at this stage of the session.