Korean Won – US Dollar Weekly FX Rate Forecast

Here’s this week’s forecast for the Korean won-US dollar exchange rate from Hana Bank.

The weekly forecast is neither a guarantee nor a promise of accuracy and is intended to give our readers information on the forecasted foreign exchange rate from the bank each week.

Check out the most up-to-date foreign currency exchange rates for over 40 currencies here.


Trading range: 1,365 – 1,383 KRW per 1 USD

This week’s forecast:

The market will attempt to bring the KRW-USD rate down, on the back of US inflation data showing some signs of softening. The US Consumer Price Index(CPI) to be released on the 13th is forecast to have edged down in August to 8.1% year-over-year. Under such conditions, expectations are growing that the Federal Reserve may slow its rate hikes, helping the US currency attempt to turn lower.

Yet, still-high inflation and wariness ahead of the Federal Reserve’s policy meeting will likely prevent the greenback from falling sharply. In addition, given concerns about the prolonged lockdown and the resultant slowdown in China, demand for safe-haven assets will remain strong, curbing any sharp decline in the greenback. 

Last week’s trend:

As the energy crisis in Europe sent the euro down and the US dollar buying remained unabated, the Korean won-U.S. dollar (KRW-USD) exchange rate opened the week up.   

The rate then rose at a faster pace, assisted by a surge in US Treasury yields and an increase in the greenback’s buying power. With Asian currencies falling, the KRW-USD rate jumped to the upper 1,380s, hitting the year’s highest point before erasing some of its gains due to intervention by the government.  

Later in the week, coupled with the greenback’s taking a breather from its recent strong run, investors’ wariness toward FX authorities’ intervention caused the KRW-USD rate to end the week down. 

Disclaimer: Neither Hana Bank nor Haps Korea shall accept any liability for any damage or loss, including but not limited to profit or loss, that may arise either directly or indirectly from use of this information.

 

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