Goldman Sachs Remains Bullish on South Korean Won, Taiwan Dollar, and Malaysian Ringgit Despite Currency Declines
Goldman Sachs has expressed a bullish outlook for the South Korean won (KRW), Taiwan dollar (TWD), and Malaysian ringgit (MYR) in 2026. The bank attributes this optimism to strong AI-related capital spending and export performance, particularly from semiconductor-driven economies like South Korea and Taiwan. Goldman forecasts significant current account surpluses—13.9% of GDP for South Korea and up to 25% for Taiwan—which it believes will support these currencies despite a broader weakening against the U.S. dollar. In contrast, energy importers such as Thailand (THB) and Indonesia (IDR) are expected to underperform due to rising oil prices and governance concerns. While all three AI-linked currencies have depreciated in 2026—KRW by 1.64%, TWD by 3.05%, and MYR by 0.67%—they still outperformed energy-dependent counterparts like the peso, baht, and rupiah. Goldman also highlighted China's yuan (CNY) as an exception to Asian currency trends, with a projected USD/CNY rate of 6.50 due to undervaluation and Beijing’s efforts to internationalize its currency.
Tickers: $GS
Topics: AI investment Asian currencies current account surplus Goldman Sachs