BOK’s Rhee warns weak won can lift inflation, signals U.S. trade and FX update

"Rhee's comments from the Bank of Korea illustrate the impact of geopolitical risks on the South Korean economy, especially concerning inflationary pressures from a weakening won. The increase in overseas investments in AI stocks signifies persistent capital outflows, potentially exacerbating the won's decline. Market participants are keenly waiting for forthcoming government announcements, which may imply direct measures or policy adjustments to stabilize the currency. As economic uncertainty rises, traders must carefully analyze this information and manage their risks thoroughly. In this environment of ongoing volatility regarding the won, opportunities may arise, but they necessitate heightened caution."