South Korean Won: Oil-linked range view into BoK meeting – Commerzbank
The post South Korean Won: Oil-linked range view into BoK meeting – Commerzbank appeared on BitcoinEthereumNews.com. Commerzbank’s Charlie Lay argues that elevated South Korean inflation strengthens the case for a 25bp Bank of Korea (BoK) hike to 2.75% on 16 July. USD/KRW has fallen from 1560 to 1506 on earlier Oil weakness, but the bank now expects the pair to trade in a 1500–1520 range, with Oil prices and global risk sentiment remaining key drivers. Won pressured by inflation and Oil “South Korea’s inflation remained elevated in June, reinforcing the view that the Bank of Korea (BoK) is on course to hike rates next week. Headline CPI inflation was slightly higher at 3.2% yoy from 3.1% in May, marking the highest reading since December 2023. It remained well above BoK’s 2% target.” “Other factors expected to keep inflationary pressures firm include the weak won and robust wage growth linked to the AI-driven semiconductor boom.” “The latest inflation report strengthens the case for Bo