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: 1,315 – 1,350 KRW per 1 USD
This week’s forecast:
The F/X market is projected to attempt to drive down the KRW-USD rate as investors expect the Fed to slow its pace of interest rate hikes. But with the greenback being held steady on the back of the hawkish Federal Reserve chair and protest over Covid restrictions in China, the market is forecast to face volatility.
If some indicators set to be announced this week, including PCE(Personal Consumption Expenditures) price index and jobs report, show the downward trend of inflation and slowing employment growth, it will serve as factors pushing down the KRW-USD rate.
However, the Fed chair’s hawkish comments will dampen risk appetite and Korea’s trade deficits in November will also support the exchange rate. In addition, the weaker yuan caused by the resurgence of COVID-19 in China and swelling protests against Covid curbs will help weaken the won, as well.
Last week’s trend:
The KRW-USD exchange rate opened the week up, influenced by Boston Federal Reserve President’s remarks that the Fed may need to deliver another 75bp rate hike. It then rose further in sync with the weaker yuan affected by the increase in Covid infections in China.
At mid-week, the KRW-USD rate turned downward as the greenback erased earlier gains and foreign investors were on a net buying mode on the Seoul bourse.
Later in the week, the FOMC minutes’ dovish tone caused the US dollar to come under selling pressure amid expectations that the Fed will switch to smaller interest rate increases.
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.