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Bank of Korea (BOK) Governor Lee is out on wires stating that recent fall in the South Korean Won (KRW) does not look excessive when compared to the slide seen in other emerging market currencies.  

Key quotes (Source: Reuters)

  • 2018 GDP forecast at 2.9 pct vs 3.0 pct seen earlier
  • 2018 inflation forecast 1.6 pct vs 1.6 pct seen earlier
  • Uncertainties to s.Korea economy higher than before
  • Thursday’s decision to keep rates steady was not unanimous
  • Board member lee il-houng was dissenter to Thursday’s rate decision
  • Growth, inflation trajectory not so much different from paths seen in April
  • Impact from trade dispute won’t be small for Sout Korea economy once pledges are enacted
  • Major capital outflow doesn’t seem likely for Sout Korea
  • Its difficult to see sole dissenter seen today as a signal for the future rate hike
  • Recent falls in KRW vs. USD was rapid
  • Falls in KRW in recent weeks are not excessive compared to movements in other emerging market currencies
  • Volatilities in won may increase, will closely watch currency movements
  • 2019 GDP growth seen at 2.8 pct