ING’s Min Joo Kang notes that KRW is trading below 1,500, with near-term moves heavily dependent on Middle East developments. The team keeps its 1,450–1,550 trading range, expecting KRW to strengthen rapidly if the war ends. They argue recent KRW weakness stems mainly from foreign equity profit-taking, with attractive Korean equity valuations helping to stabilise the currency.

War risk and equities drive Won outlook

"KRW now trades below 1,500 level. The near-term move will depend heavily on the Middle East situation. Thus, we continue to keep our trading range of 1,450-1,550 for now."

"We agree with Governor Rhee’s view: if the war ends, then the KRW is expected to strengthen quite rapidly. The recent weak KRW was mostly driven by foreign investors’ net selling of equities – presumably profit taking rather than panic selling."

"The still appealing valuation levels in the Korean equity market are expected to help stabilise KRW."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)