Korean won’s strength at odds with growing headwinds
SEOUL - The Korean won has been resilient amid the recent episode of an Emerging Markets sell-off, with an easing in geopolitical tensions between North and South Korea benefitting the KRW by lowering the country’s risk premium.
However, says ANZ Bank in a research note, downside risks to the South Korean economy are building.
“Weaker near-term growth will be a headwind for the currency once the euphoria over the US-North Korea summit fades,” ANZ says. www.live.anz.com (ATI).