Bank of America believes a buying opportunity in the Korean won has emerged after the selloff in artificial intelligence-related stocks.

Claudio Piron, head of Asia FX and rates strategy for global research at the bank, said the won has recently weakened alongside AI-linked shares, but South Korea's sizable current account surplus provides "considerable" support for investors looking to establish long positions.

Piron of Bank of America believes that after the AI-driven selloff, "this factor will start to play out," referring to the opportunity to go long the won. "On the margin, I think current levels offer investors an opportunity to build long positions in the won," he said in an interview.

Regarding the US dollar, Piron said the "US exceptionalism" narrative that had previously driven dollar strength is closely tied to AI, and that narrative has now faded somewhat.

He expects the USD/KRW exchange rate to reach 1,330 by year-end, and further decline to 1,300 in the following quarter.