South Korean Won: Consolidation zone eyed against US Dollar – Commerzbank
Commerzbank’s Charlie Lay and Dr. Henry Hao highlight South Korea’s strong export-led growth and large current-account surplus as key drivers of Korean Won strength against the Dollar.
Commerzbank analysts Charlie Lay and Dr. Henry Hao note that South Korea's strong export-driven growth and sizable current-account surplus are key factors behind the Korean Won's resilience against the US Dollar. They point to reduced financial-account offsets due to National Pension Service hedging and corporate repatriation, particularly from a major semiconductor company's US listing.
The Bank of Korea's tightening policy and prior appreciation have already weighed on financial conditions. Consequently, the analysts expect USD/KRW to consolidate near the current levels of 1,350-1,400 in the near term.
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