Wells Fargo released the latest market research and indicated that the current rise in the Korean stock market is unlikely to effectively support the Korean won exchange rate in the long term. The agency's Asia Pacific chief strategist, Kidu Narayanan, said that exchange rate drivers related to stocks and American Depositary Receipts are one-off events, and investors are advised to adopt a bearish trading strategy of shorting the Korean won against the US dollar. Wells Fargo believes that unfavorable external factors still exist, and that rising global energy prices and heightened risk aversion in the stock market are putting pressure on the won. Narayanan stressed that South Korea relies heavily on energy imports to meet domestic demand, and a significant proportion of oil imports need to pass through the Strait of Hormuz. This structural weakness may further damage the Korean won exchange rate. Furthermore, although South Korea has benefited from a huge export surplus brought about by the artificial intelligence boom, the decline in the exchange rate of corporate export earnings has limited its supporting effect on the won.

Wells Fargo released the latest market research and indicated that the current rise in the Korean stock market is unlikely to effectively support the Korean won exchange rate in the long term. The agency's Asia Pacific chief strategist, Kidu Narayanan, said that exchange rate drivers related to stocks and American Depositary Receipts are one-off events, and investors are advised to adopt a bearish trading strategy of shorting the Korean won against the US dollar. Wells Fargo believes that unfavorable external factors still exist, and that rising global energy prices and heightened risk aversion in the stock market are putting pressure on the won. Narayanan stressed that South Korea relies heavily on energy imports to meet domestic demand, and a significant proportion of oil imports need to pass through the Strait of Hormuz. This structural weakness may further damage the Korean won exchange rate. Furthermore, although South Korea has benefited from a huge export surplus brought about by the artificial intelligence boom, the decline in the exchange rate of corporate export earnings has limited its supporting effect on the won.