The Korean won briefly crossed the 1,270 level in late-April. Economists at ING expect the USD/KRW to stay at elevated levels above 1,260.

KRW to remain under pressure

“Korea’s trade balance has been in the red for two consecutive months and it is expected to remain so for a few more months due to higher energy prices.”

“Despite the BoK’s relatively rapid normalisation, the Fed’s faster rate hikes should keep weighing on the KRW for a while.” 

“We expect the KRW to remain at an elevated level above 1,260.”