ING’S Condon Says Korean Won May Drop 0.8 Percent by September
Tim Condon, head of research for Asia at ING Groep NV in Singapore, comments on the outlook for South Korea’s won in a research note released today. He forecasts the won will weaken 0.8 percent to 1,080 per dollar in three months.
“We think the elevated level of banks’ short-term external debt is the main reason that the Korean won is among Asia’s most sensitive currencies to fluctuations in investor risk appetites. It depreciates more against the U.S. dollar than other Asian currencies during bouts of risk-off and appreciates more during bouts of risk-on.”
The won could touch its recent high of 1,065 per dollar in a “Greece risk-on rally” but the rally will be short-lived, he wrote.
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