Won Swings From Worst to Best in Asia and More Gains Expected
- The currency is seen rising above 1,300 per dollar by analysts
- Societe Generale sees won benefiting from smaller BOK hike
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South Korea’s won is seen strengthening further after bouncing back from a 13-year low to become Asia’s best-performing currency, as the outlook for global trade improves for the major exporting nation.
The won has climbed 6% against the dollar this month, the biggest rise among major Asian currencies, amid expectations of softer rate increases in the US and China’s pivot away from its Covid Zero policy. Oil price’s retreat from this year’s highs may also help narrow the trade deficit in an economy dependent on fuel imports.