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The Bank of Korea (BOK), the South Korean central bank, said in a statement on Wednesday, it “will suspend auctions for some time, while monitoring market conditions, as the FX liquidity situation seems sound, given the continued decline in LIBOR interest rates, rising swap rates and foreign currency deposits.”

Amidst a peak in the coronavirus crisis led funding distress during mid-March,  the BOK signed a bilateral $60 billion currency swap arrangement with the Fed for at least six months, and pledged to inject dollar liquidity immediately to onshore markets to stabilize the currency market.

USD/KRW extends choppy trend

USD/KRW trade quite choppy so far this Wednesday, with the South Korean won returning to the red zone amid risk-averse market environment and resurgent US dollar demand across the board.

At the time of writing, USD/KRW adds 0.16% to trade at 1224.50.