Early Monday in Asia, Bloomberg released an analytical piece, relying on the content from Standard Chartered Bank Korea Ltd. and Woori Bank, to suggest a further recovery in USD/KRW from the 16-month low flashed on October 27.
Having become the best Asian performer against the US dollar, with over 3.0% October month gains, the South Korean won “may be near its peak” said the piece.
While expecting the same, the report coveys the South Korean policymakers’ verbal warning, unveiled last week, for the market intervention to tame the consecutive fifth monthly gain of the Asian currency. The report also identifies slow stochastic, a technical indicator, to suggest the USD/KRW bounce from the multi-month low.
“The economic situation isn’t all that optimistic,” Park Chong Hoon, an economist at StanChart in Seoul said, per Bloomberg, while also adding that the wide trade surplus that has supported the currency is unlikely to persist.
No respite for buyers…
Despite the analytical piece suggesting a bounce, USD/KRW drops 0.16% intraday to currently around 1134.75. In doing so, the quote should have been respecting the upbeat prints of South Korea’s Nikkei Markit Manufacturing PMI for October that recently crossed 48.8 forecast and 49.8 prior to 51.2.
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