South Korean Won: BoK tightening supports KRW against US Dollar – Commerzbank
Commerzbank’s Charlie Lay reports that the Bank of Korea (BoK) delivered a second consecutive 25 bp hike to 3.0% and kept a tightening bias, supporting KRW after its sharp appreciation since June.
Commerzbank's Charlie Lay reports that the Bank of Korea (BoK) has continued to hike interest rates by 25 basis points to 3.0%, maintaining a tightening bias. This support for the South Korean Won (KRW) comes after its sharp appreciation since June. While a near-term pause is expected, the BoK could increase the base rate to 3.25% if growth and core inflation remain strong, potentially leading to a consolidation of USD/KRW between 1,360 and 1,400 in the near term.
The BoK's decision and tightening bias are supportive for the KRW, although monetary policy is not expected to be the main driver after the currency's recent strong appreciation.
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