Gate.io: Worries about the future of the South Korean won

On November 28, the Netherlands International Group's senior economist Min Joo Kang stated that after the unexpected rate cut by the Central Bank of Korea, the Netherlands International Group changed its expectations for the South Korean won. It is now expected that the Central Bank of Korea will continue to cut interest rates in the future, which may put pressure on the won. The increasing economic rise and yield spread between the United States and South Korea are risk factors for the valuation of the won. The Netherlands International Group expects the Exchange Rate of the South Korean won against the US dollar to be between 1375-1475 next year, previously estimated at 1350-1400. The trend of the US dollar will be a major factor in overall capital flows, but the won may be more affected than other Asian currencies. Factors such as a large trade surplus with the United States, high export dependency, and geopolitical sensitivity make the won very sensitive to external shocks.