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Financial markets are expecting South Korea's central bank to start cutting rates over the next 12 months. Real economic growth and inflation are both expected

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Financial markets are expecting South Korea's central bank to start cutting rates over the next 12 months. Real economic growth and inflation are both expected to be slightly below their respective targets. The government data released just prior to market open shows that inflation rates rose significantly last month. The central bank governor has not yet made any comments but is known to be a hawkish central banker. What is the most likely impact to the South Korean Won (USD/KRW) in FX markets? A. USD/KRW will increase significantly. B. USD/KRW will decrease significantly. C. The KRW will generally depreciate against other currencies. D. There will not be any meaningful change to the KRW in FX markets

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