Amid the historical past of a 2.6% grasp in the US Dollar Index, the Korean received fell 3.3% in opposition to the US greenback in August, the worst performer amongst EM Asia peers. Economists at MUFG Bank assume the USD/KRW pair to prolong its upmove toward 1,370 via end-2022.
Strong USD to in addition weigh on KRW
“We see the KRW final enormously positively correlated with the US greenback index and negatively correlated with Korean fairness markets this month.”
“A robust US dollar and persisting hazard aversion will possibly in addition stress the KRW decrease in close to term.”
“We see KRW shifting up to 1,370 through year-end.”