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: 1,100 – 1,117 KRW per 1 USD
This week’s forecast:
Rejection of renewal of the U.S. Fed emergency loan program may strengthen the market’s preference for safe-haven assets this week. Moreover, a worsening coronavirus crisis both at home and abroad may further amplify risk-averse sentiment. Although expectations about development of a coronavirus vaccine may limit the market’s preference for safe-haven assets, its effect may be limited because news about a possible vaccine is constantly being released lately.
Last week’s trend:
Risk-on sentiment strengthened at the start of the week as New York stock prices rose due to improved U.S. corporate sales and Moderna’s coronavirus vaccine reportedly being 94.5% effective. Nevertheless, F/X regulators’ heavy vigilance limited the Korean won-U.S. dollar (KRW-USD) rate’s bottom line.
At mid-week, amid expectations about the incoming Biden administration, U.S. Federal Reserve chair Jerome Powell’s remarks that the dollar’s bearish trend will continue pushed the KRW-USD rate downward.
At the end of the week, due to concerns about rising NY stock prices and weaker expectations about a coronavirus vaccine, the KRW-USD rate skyrocketed. The KRW-USD exchange rate closed the week down slightly, influenced by a recovering U.S. economy and the development of a coronavirus vaccine.
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.