KRW: BoK defends won as oil shock bites – Commerzbank

Commerzbank’s Moses Lim notes that higher Oil prices and heavy reliance on Middle Eastern crude have kept KRW volatile, with USD/KRW trading between 1,420 and 1,500 and the won down year-to-date. He expects the Bank of Korea to hold rates, focus on FX stability, and potentially smooth markets using ample reserves.

Hawkish guidance and FX smoothing ahead

"USD/KRW has fluctuated between the 1,420-1,500 range since December 2025."

"Year-to-date, KRW is down 1.8% against the dollar."

"BoK Deputy Governor Ryoo Sang-dai issued some hawkish guidance yesterday and warned that intervention risks are rising as BoK deems recent movements in the KRW as diverging from economic fundamentals."

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"We expect BoK to engage in smoothening operations in both the onshore and offshore KRW market."

"We expect BoK to leave rates unchanged for the time being and adopt a wait-and-see attitude."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

РЫНОЧНЫЕ КОТИРОВКИ

Название / Символ
График
% Изменение / Цена
GBPUSD
Изменение за 1 д.
-0.28%
1.32332
EURUSD
Изменение за 1 д.
-0.34%
1.10545
USDJPY
Изменение за 1 д.
+0.15%
159.933
AUDUSD
Изменение за 1 д.
-0.57%
0.67884