Standard Chartered Bank maintains short-term underweight and medium-term neutral FX weighting on KRW

Quotes from Standard Chartered Bank

• We maintain a short-term Underweight and medium-term Neutral FX weighting on the KRW. Korea's weak growth-inflation mix, combined with monetary easing across the region, is likely to reinforce expectations of further BoK rate cuts and thus weigh on the KRW.
  
   
• Inflows to Korea's bond and equity markets have slowed in recent months due to concerns over the domestic economy. We see upside risks to USDKRW from broader USD strength and expect USD-JPY to make a sustained break above 120.
  
   
• With the KRW's trade-weighted value (the KRW nominal effective exchange rate, or NEER) again nearing elevated levels, the authorities may become less tolerant of KRW strength.