Institution: The risk-return of the South Korean won strengthening seems "quite high" due to the possible reopening of the Hormuz Strait.

Mitsubishi UFJ Bank's Michael Wan stated that with the continued reopening of the Strait of Hormuz, the risk-return profile for a stronger future Korean won seems "quite high"; he pointed out a temporary agreement reached between the United States and Iran. The senior foreign exchange analyst cited the extent of the poor performance of the Korean won, increasing official resistance in South Korea to a weak exchange rate, and the more hawkish stance taken by the Bank of Korea. Wan said in a research report: "We expect the US dollar to Korean won to gradually move towards the 1400 level over time, and the Bank of Korea will raise interest rates twice this year."