Mar
23
Wells Fargo Sees Won Rally Reversal on Fed Tightening Prospects
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Won susceptible to equity decline, U.S. rate hikes: strategist
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South Korea’s yield advantage over Treasuries has disappeared
The won’s biggest monthly rally since 2009 is susceptible to a correction, with the U.S. set to resume raising interest rates as inflows to South Korea weaken, according to Wells Fargo & Co.
While the currency has gained 6 percent in March and monthly stock inflows are the highest in 11 months, the longer-term picture looks less rosy. Over the past 12 months, $5.4 billion has flowed out of South Korean equities and the nation’s 10-year government bonds now yield less than U.S. Treasuries. Wells Fargo is projecting an exchange rate of 1,180 a dollar in a year, compared with 1,165.30 as of 11:42 a.m. in Seoul…
Wells Fargo Sees Won Rally Reversal on Fed Tightening Prospects
