0030 GMT - The recent U.S. dollar strength won't likely constrain the Bank of Korea's policy easing as much as before, Goldman Sachs economists Goohoon Kwon and Andrew Tilton say. They note strategic hedging by South Korea's National Pension Service and easing of rules on banks' foreign-currency borrowing. Both measures can support the Korean won by helping supply more of the dollar to money markets. The GS economists expect the BOK to ease its policy based primarily on weakening growth momentum and further downside risks in domestic demand. GS forecasts a 25-basis-point interest rate cut in January for a third consecutive time and more cuts in 2Q and 3Q. (kwanwoo.jun@wsj.com)
(END) Dow Jones Newswires
January 13, 2025 19:30 ET (00:30 GMT)
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