South Korean Deputy Finance Minister and FX chief Moon Ji Sung says KRW is likely to rise further and BoK rate hike is to stabilise FX, while KRW remains weaker than fundamentals

The comments from South Korean Deputy Finance Minister Moon Ji Sung indicate a bullish outlook for the Korean Won (KRW) based on expected currency strength and a focus on stabilizing the FX market through potential Bank of Korea (BoK) rate hikes. This suggests policymakers see current KRW weakness as misaligned with economic fundamentals, which may lead to upward pressure on the currency if rate hikes materialize. Traders should monitor the implications for FX flows and related risk assets in the region as the market digests these signals.