Dismal economic growth has established the Korean won as one of the worst-performing emerging market (EM) currencies against the dollar this year. We expect Korea’s bleak growth prospects and unfavourable yield gaps to keep the won weak, though its considerable undervaluation should limit further downside. We forecast the won to depreciate from ~1,300/$ currently to 1,400/$ by year-end.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.