A widening real yield differential with the US due to very low inflation expectations, and the significant change in the trajectory of the Chinese yuan have improved the outlook for the Korean won, and we are shifting to an appreciatory bias. We have upgraded our 2017 average forecast to KRW1,160/USD from KRW1,250/USD previously, and forecast further mild appreciation beyond this.
The election of Moon Jae-in as South Korea's new president is unlikely to lead to a significant improvement in the country's domestic policy environment, with the new president's The Minjoo Party of Korea lacking a majority in parliament. Moon has espoused a more interventionist style of government, but we expect him to face difficulties in implementing his policies given the structural nature...
A member of our Client Services team will be in touch soon to arrange a convenient time for a free demonstration of the service. If your enquiry is urgent, please email our team here.
Thanks, BMI Research