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Won outperforms peers as weaker dollar and AI drive exports
MUFG said USD/KRW looks oversold and prone to consolidation even after the sharp recent appreciation.
MUFG strategist Lloyd Chan highlighted the South Korean won as a standout among Asia FX, saying it has outperformed regional peers. The move has been supported by a softer US dollar alongside a resilient semiconductor and AI investment cycle that supports exports and inflows, according to FXStreet.
Chan also cautioned that despite the won’s sharp recent appreciation, it still appears undervalued after years of underperformance. He added that the current USD/KRW setup looks oversold, leaving the currency vulnerable to near-term consolidation.
The commentary came as FXStreet noted broader market context, including a stabilizing greenback and other currency moves around the same session. FXStreet also referenced higher US Treasury yields across the curve as part of the day’s market backdrop, alongside ongoing price moves in risk assets.