KRW: The Pick Of The Bunch

Asian FX are looking firmly bid on the back of an ailing US dollar, with the Korean won arguably the pick of the bunch. Our constructive KRW stance is justified by enduring risk appetite, a decent macro recovery, and scope for early rate hikes next year. We went outright bullish the won back in early August, setting an ambitious target of KRW1,050/US$, and see no reason to veer from this view. We also see relative value against the Japanese yen, pencilling in gains to KRW11.41/JPY by end-2009 (from KRW13.26/JPY at present).

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