According to ING’s Min Joo Kang, the Korean won (KRW) is currently trading below the 1,500 level, with its near-term movement heavily influenced by developments in the Middle East [1]. ING maintains a trading range forecast for KRW between 1,450 and 1,550, citing ongoing war risk as a key factor keeping this range in focus [1]. The report highlights that the recent weakness in KRW is primarily due to foreign investors’ net selling of Korean equities, which is characterized as profit-taking rather than panic selling [1].
ING also notes that the attractive valuation levels in the Korean equity market are expected to help stabilize the KRW, despite current pressures [1]. The team agrees with Governor Rhee’s assessment that if the war ends, the KRW is expected to strengthen rapidly [1]. No specific dates, numbers, or ticker symbols are mentioned regarding the timing or magnitude of these potential moves.
Market implications discussed in the article suggest that the KRW’s outlook remains uncertain and closely tied to geopolitical developments, particularly in the Middle East. The stabilization of the currency is anticipated if equity valuations continue to attract investors, and a swift appreciation is expected should the war risk subside [1].
CONCLUSION
The KRW is trading below 1,500, with its trajectory closely linked to Middle East war risk and foreign equity flows. ING expects stabilization from attractive equity valuations and rapid strengthening if the conflict ends. Market participants should monitor geopolitical developments for further direction in KRW movement.