UBS Sees Korean Won Catching Up With Kospi Rally and Dollar Drop

South Korea’s won -- one of Asia’s worst performing currencies this year -- could strengthen following a rally in local stocks and a slump in the U.S. dollar, according to UBS Group AG.

The won’s gains since the end of April have been modest compared with the Kospi’s advance and the greenback’s weakness, the bank wrote in a note. South Korea’s currency has climbed about 2% versus the dollar since April 30, while the nation’s equity benchmark has rallied 13%. Deutsche Bank AG’s trade weighted index for the dollar has dropped more than 2.5% during that period.