Won Way Traffic

Assessing KRW and laying down a conviction call.

The South Korean Won (KRW) has experienced sharp weakness year-to-date, recently hitting the lowest level against the greenback since 2009. With the Kospi breaking records almost daily, thanks to the likes of SK Hynix and other equity names catching bids, the conventional EM correlation between the currency and the stock market has evaporated.

Even though there are reasons for this below the surface, the emerging dynamic, coupled with incorporating an equity view into our FX&Rates world, means we now look to step in as KRW buyers as we anticipate the next leg of this macro trade playing out.