The AI boom propels the Korean won from Asia's worst-performing currency to a comeback, with strategists optimistic about further appreciation potential.

(1) Driven by capital inflows from the artificial intelligence boom, the Korean won has shifted from being Asia's worst-performing currency to its best. Strategists generally believe there is still further upside potential. (2) BNP Paribas points out that Korean chip companies repatriating overseas capital to expand domestic production will support the continued rise of the won, though the pace may be slow. Goldman Sachs believes the inflow of equity capital from the rising Korean stock market will also provide support. Natixis emphasizes that export growth will boost the won. (3) Goldman Sachs expects the Korean won will rise to 1,350 won per US dollar over the next 12 months, with the exact degree of appreciation depending on the performance of Korea’s Kospi index.