• USD/KRW likely to trade around 1200 by end-2017, says ScotiaBank

    Source: FxWire Pro - Commentary / 11 May 2017 18:31:44   Eastern Standard Time

    The South Korean economy is one of the most open economies amongst its regional peers, and thus the South Korean won might continue to remain greatly volatile in the near term due to the shifts in global investor sentiment, the U.S. Federal Reserve’s continuing monetary normalization and geopolitical developments in the Korean peninsula, noted Scotiabank in a research report.

    The U.S. Department of the Treasury did not label South Korea a “currency manipulator” in April; however, it placed the nation on a “Monitoring List” of major U.S. trading partners that “merit close attention to their currency practices”. If the U.S. dollar weakens widely in the near term, the Korean central bank is expected to refrain from intervening in the foreign exchange market to curb appreciation of the South Korean won.

    “We expect USD/KRW to close 2017 at 1200”, added Scotiabank.