Won weakness, election season over

The 6% decline in the Korean won since the start of the year does not pose a major threat to the economy. However, policymakers are clearly irked by the decline in the currency, with officials from the Bank of Korea describing the decline as “excessive”. Despite the poor outlook for the economy, the recent drop in the won means the central bank is likely to leave interest rates unchanged at its upcoming meeting. With the three main elections of the year in Asia now out of the way, it is pretty much a case of as you were. The incumbents in Indonesia and India have been comfortably re-elected, while Thailand’s political future remains as uncertain as ever.