MUFG notes strong Korean export progress, particularly in semiconductors, however says KRW has underperformed on heavy international fairness outflows and AI-valuation considerations. With the Financial institution of Korea seen on the finish of its easing cycle and KRW volatility elevated, MUFG expects uneven buying and selling, although its forecasts present a gradual USD/KRW drift decrease by 2026.
Fairness outflows hit Korean Received
“That mentioned, we nonetheless assume the BoK’s easing cycle has ended given the enhancing financial elementary, monetary stability threat associated to Seoul’s housing market and heightened KRW volatility.”
“This week, KRW was the underperformer in Asia with 2% depreciation in opposition to US greenback given vital web international fairness outflow (USD 5.3bn) brought on by considerations over AI valuation and broader risk-off temper.”
“Because of this, KOSPI index additionally skilled a pullback of two.7% to 5100 degree ended the week.”
(This text was created with the assistance of an Synthetic Intelligence instrument and reviewed by an editor.)
