Fed rate increase makes outlook worse for SK won‘WON DOWNSIDE’: After falling to a 17-month low last week, Goldman Sachs and Citigroup are urging a third BOK rate increase to prevent more selling off of the wonBloombergThe South Korean won was Asia’s worst performer over the past six months, and technical indicators suggest the misery is not yet over. The won dropped to a 17-month low last week, breaching a key support level. Other indicators, including the moving average convergence-divergence, suggest that the tech-dependent currency could slip further against the US dollar. The Bank of Korea (BOK) could give traders more reason to sell the won on Friday if it disappoints the likes of Goldman Sachs Group Inc and Citigroup Inc, who are calling for a third rate increase sooner than later. US Department of the Treasury 10-year yields have surged to their highest since April last year, denting sentiment for emerging-market assets.

Source: Taipei Times January 11, 2022 03:59 UTC