According to economists at Scotiabank, USD/KRW will likely fall below the 1,190 level before trading even lower once external uncertainties start to fade away.

BoK expected to hold its policy rate steady at 1.25%

“The Bank of Korea (BoK) is expected to hold its policy rate steady at 1.25% on Thursday, but remains on track to deliver another 25bp rate hike in the second quarter.”

“As a traditional high-beta currency, the Korean won will remain susceptible to external uncertainties. In the near-term, the ongoing Russia-Ukraine crisis could dampen market sentiment abruptly.”

“USD/KRW is now staying in an ascending channel, and will likely fall below the 1,190 level before trading even lower when external uncertainties start to fade away.”