Morgan Stanley’s Lord Says Worst May Be Over for Korean Won

The won could soon stabilize and even reverse some of its recent slide, as upcoming US interest-rate cuts coincide with the end of South Korea’s policy-easing cycle, according to Morgan Stanley strategist James Lord.

While Lord expects the won to stay volatile for now after enduring its worst selloff since the 2008 financial crisis, he said monetary-policy shifts and a calming of trade tensions are helping tilt “the risk-reward more toward recovery and outperformance of the currency.”