South Korean Won: Strong exports and policy support KRW – Commerzbank
Commerzbank’s Moses Lim notes that USD/KRW declined on Friday and over the week as robust South Korean exports and supportive policy actions bolstered the Korean Won. Elevated but easing inflation allows the Bank of Korea to stay hawkish while likely holding rates in October.
Commerzbank's Moses Lim attributes the decline in USD/KRW to strong South Korean exports and supportive policy actions. Despite a moderation in inflation, the Bank of Korea maintains a hawkish stance while likely holding rates steady in October. Government relief measures and reduced bond issuance further strengthen domestic markets.
September exports unexpectedly rose by 83.5% year-over-year, primarily driven by semiconductor exports surging 262%. The Bank of Korea's ongoing rate hikes have brought headline inflation above its 2% target for seven consecutive months.
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