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USD/KRW dropped about 7.3% last month and has slid nearly 4% further this month, a downside move as one-sided as the won-weakness episodes that triggered joint BOK-government verbal intervention last Christmas Eve and in early June. A stronger won mechanically cools import prices and eases the inflation constraint on Bank of Korea policy, but the pace pressures exporter translation earnings and KOSPI sector mix even as it improves the FX-hedged return on Korean assets for foreign investors. BOK Governor Shin Hyun-song called the recent path quite stabilized, so the watch item is whether officials start smoothing downside speed rather than direction, alongside the next CPI print and foreign equity flow data for confirmation.
As a Forex signal, watch whether it changes price action, volatility, or flows around KRW=X, KOSPI.
Original Source: 연합인포맥스
This page is market information analysis, not investment advice.
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