Jun
01
Morgan Stanley Sees Won Weakness as Trade Data Heaps on Pressure
By-
Currency, bonds little changed as investors await U.S. jobs
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Rate swaps starting to price in South Korea monetary easing
Morgan Stanley maintained its forecast for South Korea’s won to weaken further after trade and inflation data backed the case for a cut in interest rates.
The bank sees the currency declining to 1,250 per dollar by year-end, a loss of 4.7 percent based on the current spot rate. The won swung between gains and losses on Thursday as investors await U.S. jobs data for a better clue on the likely timing of a Federal Reserve rate increase. A 17-month contraction in South Korean exports and the smallest current-account surplus since 2014 have heightened the odds for monetary easing…
Morgan Stanley Sees Won Weakness as Trade Data Heaps on Pressure
