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South korean won gains seen moderating after sharp repricing dbs
Developing
In Short: DBS Group Research's Chang Wei Liang notes that the USD/KRW has declined to around 1340 since late June, reflecting earlier optimism on the Korean Won from a booming memory sector and strong investment plans.
However, he now expects further gains for the Korean Won to be more limited, as the undervaluation has largely closed and the National Pension Service has suspended FX hedging.
The aggressively hawkish Bank of Japan (BoJ) repricing continues to weigh on the USD/JPY pair and the USD, acting as a tailwind for the bright metal, according to Fxstreet.
What's confirmed
- 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.
- However, he now expects further KRW gains to be more limited as undervaluation has largely closed and the National Pension Service suspends FX hedging.
What's still developing
- However, it remains to be seen if Gold sustains its recovery momentum, as Oil prices remain elevated at seven-week highs, keeping inflation concerns and Fed rate hike bets alive.