Eugene Investment & Securities: Won Rally May Rebound if It Strengthens to 1,250-1,300

According to Jin10, Eugene Investment & Securities foreign exchange economist YH Cha said the won's recent strong rally could eventually reverse if it strengthens to the 1,250-1,300 range against the U.S. dollar. Strong semiconductor-led exports in South Korea, a large trade surplus, and exporters repatriating dollar earnings have pushed the won to a 23-month high, with the currency up more than 12% against the U.S. dollar over the past three months. Cha also said the won still faces long-term pressure from continued growth in South Korean individual overseas investment and the resulting rise in dollar demand.