South Korean Won: Semiconductor pullback weighs on KRW – DBS
DBS Group Research’s Chang Wei Liang highlights that USD/KRW has pushed above 1530 as weakness in semiconductor stocks adds pressure on the Korean Won.

DBS Group Research’s Chang Wei Liang highlights that USD/KRW has pushed above 1530 as weakness in semiconductor stocks adds pressure on the Korean Won. He links KRW softness to foreign investor profit-taking after a sharp KOSPI rally and warns that further outflows, limited exporter repatriation of overseas earnings, and persistently high Oil prices could destabilize the currency.

Won vulnerable on chips and flows

"USD/KRW have sallied above 1530, and wobbles in semiconductor stocks today could pose another risk."

"Following a retreat in US semiconductor stocks led by an industry bellwether on Thursday, Korean chipmakers have fallen 6% in early trading today."

"KRW weakness has been ascribed to outflows amid profit-taking by foreign investors after a scorching 93% rally in the KOSPI year-to-date."

"More investor profit-taking going forward could destabilize the KRW, especially with Korean exporters not fully repatriating overseas earnings while oil prices remain sticky near USD100."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

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