BofA flags won and Taiwan dollar as dip-buys after AI slump

What happened

As AI-related shares declined, South Korea's won and Taiwan's dollar weakened in tandem. Speaking on Bloomberg TV, Claudio Piron said the Taiwan dollar shows the strongest link in Asia to AI-themed ETFs, so its latest slide lines up more with investors unwinding positions than with any weakening in economic fundamentals.

BofA's read on FX and the dollar

Piron, who oversees Asia FX and rates strategy at BofA Global Research, pointed to the scale of South Korea's and Taiwan's current-account surpluses as giving investors "substantial" room to add long exposure. "That will come into play," he said. "I would say at the margin that these levels here provide an opportunity for people to enter into long Korean won positions and long Taiwan positions." He also noted that the dollar's recent strength on US exceptionalism - a story tied to AI - has cooled for now. He projects dollar-won at 1,330 by year end and 1,300 in the following quarter.

Stocks angle and why it matters

Speaking separately on Bloomberg TV, Peter S. Kim, global strategist at KB Financial Group, argued that the pullback in South Korean stocks creates an entry point for patient buyers. On Friday, the Kospi, dominated by chipmakers, sank 6%, mirroring losses in US technology shares.

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The bottom line: BofA sees macro cushions for the won and Taiwan dollar, while a sharp equity reset has reset entry points. If you track AI as a driver across currencies and stocks, Piron's FX targets and Kim's patience pitch sketch a coherent backdrop for how risk could reprice over the next quarter.

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