Tech and FX: short-term volatility may cloud long-term trend
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It has been a tough week for chipmakers, especially those in Korea. Foreigners have withdrawn $10bn from Korean equities this week, driving USD/KRW to levels last seen in 2009. While we remain constructive on the fundamental picture for the technology sector, there could be more
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4 itemsTech and FX: short-term volatility may cloud long-term trend
Tech and FX: short-term volatility may cloud long-term trend
South Korean Fin Min says KRW volatility is excessive compared with economic fundamentals
The desk interprets the South Korean Finance Minister's remarks on excessive KRW volatility as a signal for potential stabilization should external conditions improve. Per the full note [source], the Minister highlighted that the current fluctuations in the KRW do not align with economic fundamentals, suggesting a disconnect that could correct itself. This commentary comes amid ongoing labor strikes at Samsung, which pose additional risks to the economy and could affect the currency's trajectory. Our consensus target for the KRW reflects a cautious outlook, but the potential for stabilization remains a key theme.