Citigroup expects South Korea’s National Pension Service to resume strategic FX hedging if the won stays above 1,484 per dollar for five sessions, while noting possible changes to the fund’s hedging approach amid easing capital outflow pressures and record semiconductor exports.
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Citi - National Pension Fund Likely to Resume Strategic FX Hedging if USD/KRW Exceeds 1,484 for Five Sessions
Citigroup expects South Korea’s National Pension Service to resume strategic FX hedging if the won stays above 1,484 per dollar for five sessions, while noting the fund may soon revise its hedging strategy. Citi also sees capital outflow pressures easing and forecasts a bullish outlook for the KOSPI, driven by record semiconductor exports and a shift in capital flows.
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