South Korean Won: Gains seen moderating after sharp repricing – DBS
DBS Group Research’s Chang Wei Liang notes that USD/KRW has fallen toward 1340 in a steady decline since late June, reflecting earlier optimism on the Korean Won from a booming memory sector and strong investment plans.
DBS Group Research's Chang Wei Liang observes that the South Korean Won has gained some momentum but expects further increases to be more limited. The USD/KRW exchange rate has fallen to around 1340 since late June, as optimism surrounding the Korean Won faded following the booming memory sector and strong investment plans. However, Liang believes that undervaluation has largely closed, limiting further gains.
Additionally, the National Pension Service has suspended its FX hedging operations, potentially signaling to authorities that they should moderate expectations for further KRW gains.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.