KRW Outperformance: Tech Tailwinds & USD Dynamics – MUFG Perspective

The South Korean Won (KRW) is leading Asia FX, driven by a softer US Dollar and robust support from the semiconductor and AI investment cycle. MUFG's Lloyd Chan highlights this outperformance, fueled by strong tech exports and capital inflows. Monetary policy divergence, with the Fed potentially easing more than the BOK, further supports the KRW. Technical analysis shows USD/KRW testing lower support, indicating sustained buying interest. The KRW acts as a bellwether for the global tech cycle.