Despite the forecast of a massive current account surplus this year, the won has been very weak because domestic financial entities, including individuals and households, are recycling their gains from this surplus straight back into American equities. Additionally, foreign entities are also massively selling domestic Korean assets.
The article explains that these sellers are motivated by an increase in bond yields, presumably as a result of an energy shock in the Middle East. However, there are signs of stabilization with domestic entities moderating their outflows of money:
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Despite the forecast of a massive current account surplus this year, the won has been very weak because domestic financial entities, including individuals and households, are recycling their gains from this surplus straight back into American equities. Additionally, foreign entities are also massively selling domestic Korean assets.
The article explains that these sellers are motivated by an increase in bond yields, presumably as a result of an energy shock in the Middle East. However, there are signs of stabilization with domestic entities moderating their outflows of money:
https://preview.redd.it/r7ah3ek49b2h1.png?width=1944&format=png&auto=webp&s=50ad0a684bbfd8651357f2b10cb39941ad675b59