Banks See Further Upside for the Korean Won as AI-Driven Inflows Continue

The Korean won has swung from Asia's worst-performing currency to its best-performing one on AI-fueled capital inflows, and strategists see room for further gains, according to Jiemian News. BNP Paribas said the won could extend its rally as Korean chipmakers bring funds back from overseas to expand production, though the pace of appreciation may be slow. Goldman Sachs said equity inflows driven by gains in Korean stocks will also support the won, while Natixis said export growth in South Korea will lift the currency. Goldman Sachs forecast that the won will strengthen to 1,350 per U.S. dollar over the next 12 months, with the extent of appreciation depending on the performance of the Kospi index.