DBS Group Research’s Chang Wei Liang highlights that the USD/KRW rate has risen above 1,530 as weakness in semiconductor stocks increases pressure on the Korean won. He links the softness of the KRW to profit-taking by foreign investors after the keen KOSPI rally and warns that further outflows, narrow repatriation of exporters’ overseas profits and persistently high oil prices could destabilize the currency.
Winning susceptible to tokens and flows
“USD/KRW has risen above 1,530 and today’s volatility in semiconductor stocks could pose another risk.”
“After Thursday’s decline in U.S. semiconductor stocks led by an industry leader, Korean chipmakers fell 6% in early trading today.”
“KRW’s weakness is attributed to outflows resulting from profit-taking by foreign investors following a sharp 93% rise in KOSPI year-to-date.”
“Greater profit-taking by investors in the future could destabilize the KRW, especially as Korean exporters do not fully repatriate profits abroad while crude oil prices remain steady near $100.”
(This article was created with the assist of an artificial intelligence tool and has been reviewed by an editor.)
