Forex Flash: KRW remains strong play vs. JPY – Westpac

According to the Westpac Strategy Team, “From the perspective of the yen, it seems likely that in the near term that currencies such as KRW will maintain a fairly strong positive correlation with JPY (i.e. upside in USD/JPY will continue to bias USD/KRW higher) – rhetoric around JPY/ KRW weakness from Korean officials still appears to be quite strong.”

Moreover, “It is probably a similar story for USD/TWD, although from a fundamental perspective we see Taiwan less exposed than Korea to a weakening yen – equity investors seem to have a similar outlook.” the team adds. Flows in Taiwan equities now stand at +USD $1.5B in the past 7 trading sessions and Taiwan equities are trading through recent highs and we would also note that the growth pulse has started off 2013 on a firm footing.