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: 1,280 – 1,310 KRW per 1 USD
This week’s forecast:
The KRW-USD exchange rate is expected to weaken further alongside the weakening dollar amid the Fed slowing rate-hike pace ahead of the December FOMC meeting and China’s easing of coronavirus curbs. While the Fed observes a blackout period ahead of the December 13-14 FOMC meeting, the greenback is likely to continue weakening, reflecting expectations of pace control. After blank-paper protests against the government’s strict COVID-19 measures, Chinese authorities’ immediate easing of the restrictions last week also affects the drop of the KRW-USD exchange rate.
Meanwhile, the greenback is forecast to gain strength following the recent slowing pace of rate hikes due to concerns over economic recession followed by its rapid drop and Chinese economic indicators that suggest weakness. With major countries’ November services PMI and China’s November Import/Export Index scheduled to be released, it will remain at its lowest level amid worries over an economic slowdown.
Last week’s trend:
Earlier this week, the KRW-USD exchange rate rose due to the weak yuan as the Chinese government lowered reserve requirements. Other elements that affected the exchange rate include the Asian stock market decline and net foreign selling.
Midweek, the KRW-USD exchange rate dropped, affected by the stronger yuan. As China announced housing policies and increased vaccine supply for high-risk groups, which triggered the hope for reopening, the Korean won gained ground.
Later in the week, the KRW-USD exchange rate drifted downward below the 1,300 won level due to the weakening greenback following Fed Chair Jerome Powell’s speech. As Powell suggested that a 50bp hike is likely at the December FOMC meeting, reinforcing expectations of moderating the pace of rate increases, the greenback weakened significantly.
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.
