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 via 2026.
Fairness outflows hit Korean Gained
“That mentioned, we nonetheless assume the BoK’s easing cycle has ended given the bettering financial elementary, monetary stability danger associated to Seoul’s housing market and heightened KRW volatility.”
“This week, KRW was the underperformer in Asia with 2% depreciation towards US greenback given vital internet international fairness outflow (USD 5.3bn) attributable to considerations over AI valuation and broader risk-off temper.”
“In consequence, 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.)
