KRW, TWD, Outperforming Asia FX

March 2005 | Market Strategy

The South Korean won and Taiwan dollar continue to lead Asian currency gains, having reached fresh 7½-year highs of KRW988.90/US$ and 4¾-year peaks of TWD30.55/US$, respectively. Both currencies have outpaced regional peers of late, prompting interventions by their central banks. Bank of Korea Governor Park Seung even called for "international action" to stem dollar weakness. The Philippines peso and Singapore dollar have also seen robust gains, to a 19-month high of PHP54.02/US$ and a 6¼-year peak of SGD1.6156/US$. Our medium-term targets are KRW900/US$, TWD30.40/US$, and SGD1.6000/US$, going forward.

If you would like to subscribe to Emerging Markets Monitor and gain instant access to this article, please click here to subscribe.

If you would like to take a trial to Emerging Markets Monitor please click on the trial link below.