Menu

Search

  |   Commentary

Menu

  |   Commentary

Search

USD/KRW likely to stay firm amid continued dividend payout BoK’s potential dovish stance, says Scotiabank

The USD/KRW currency pair is expected to stay firm and rally through 1,140 the rest of this week amid continued dividend payout and a potential dovish stance of the Bank of Korea (BoK), according to the latest research report from Scotiabank.

The BoK is likely to leave its policy unchanged at 1.75 percent on Thursday morning, although its elevated real policy rate remains a drag on growth together with gloomy export outlook. The central bank is likely to lower its growth and inflation forecasts in its quarterly outlook review due Thursday, the report added.

Alternatively, South Korea will boost government spending through an extra budget to spur economic growth, which has been welcomed by the IMF. Finance minister Hong Nam-ki said last week the ministry will submit a supplementary budget of smaller than KRW 7tn to parliament by the end of April.

Geopolitical situation will likely improve on the Peninsula as South Korean President Moon Jae-in said on Monday that he would push for another summit with North Korean leader Kim Jong Un with the aim of saving Trump-Kim nuclear talks.

In addition, Kim said on Friday that he is willing to hold a third summit with US President Donald Trump as long as the US offers acceptable terms for an agreement by the end of the year. Trump wrote in a tweet on Saturday that "a third Summit would be good in that we fully understand where we each stand."

"Our expectations of a steady policy rate is largely due to the Fed’s promise to be patient before adjusting interest rates again and the BoK’s determination to secure the nation’s financial stability," Scotiabank further commented.

  • ET PRO
  • Market Data

Market-moving news and views, 24 hours a day >

May 24 19:00 UTC Released

USCattle Marketed

Actual

106.9 %

Forecast

106.6 %

Previous

97 %

May 24 19:00 UTC Released

USCattle Placed On Fd

Actual

108.7 %

Forecast

113 %

Previous

105 %

January 31 00:00 UTC 689539689539m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 689539689539m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 22 19:00 UTC 701359701359m

ARTrade Balance

Actual

Forecast

Previous

-1541 %

January 31 00:00 UTC 689539689539m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 22 19:00 UTC 701359701359m

ARTrade Balance

Actual

Forecast

Previous

-1541 %

January 31 00:00 UTC 689539689539m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 689539689539m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 689539689539m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.