Morgan Stanley strategist Lord said that the worst period for the South Korean won may have already passed.

Morgan Stanley strategist James Lord stated that as the United States prepares to cut interest rates and the loose monetary policy cycle in South Korea comes to an end simultaneously, the South Korean won exchange rate may soon stabilize, or even reverse some recent declines. Despite Lord's expectation that the won will continue to experience volatility after the most severe selling off since the 2008 financial crisis, he points out that shifts in monetary policy and easing trade tensions are driving a "risk-return bias more supportive of a won recovery and outperformance." The depreciation of the won is partially due to a surge in overseas investment by domestic funds, which has led to its exchange rate approaching its lowest level since 2009, but interest rate differentials are also an important factor. In the second half of this year, the South Korean won has been the worst performing currency in Asia, falling over 8% against the US dollar.