Forex Flash: Spreads trend towards longs vs. KRW – ANZ

FXstreet.com (Barcelona) - "The KRW is one of our preferred currencies in the AXJ space - we are currently long USD put spreads versus KRW, which was initiated in September, and are comfortable holding on to that position. While we will likely see some steps being taken by the government to try to dampen KRW strength, we doubt that drastic measures will be introduced." notes Khoon Goh, Senior FX Strategist at ANZ.

Moreover, "Domestic growth may be weak, but a strong external position, better credit rating than Japan, higher yield, better medium-term growth prospects, and a currency that is not overvalued mean we maintain our constructive view on KRW. We hold to our year-end target of 1080 and forecast USD/KRW to head towards 1040 by the end of 2013." he adds.