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: 1,115 – 1,123 KRW per 1 USD
This week’s forecast:
After a short squeeze in the U.S. stock market brought instability to the market, the preference for safe-haven assets is expected to strengthen in the F/X market, increasing volatility. Under such circumstances, risk-averse sentiment is forecast to remain strong in the global market. While the KRW-USD exchange rate is expected to rise due to foreigners’ reverse remittance demand, eased concerns about the reduced size of the U.S. stimulus plan is expected to limit the rate’s upper line.
Last week’s trend:
The Korean won-U.S. dollar (KRW-USD) exchange rate opened the week down, as the KOSPI index punched through the 3,200-mark amid expectations of the U.S. Biden administration’s large-scale stimulus plan. Later, the rate dropped sharply, moving in line with the bullish Chinese yuan, but then turned upward due to vigilance toward the FOMC amid a falling KOSPI.
At mid-week, foreigners’ net selling on the domestic bourse pushed up the KRW-USD exchange rate, but it soon fell due to expectations of a dovish stance by the FOMC.
At the end of the week, the KRW-USD rate rose high due to unclear economic forecasts, and despite a weaker-than-expected U.S. 4th quarter growth rate as well as foreigners’ net selling on the domestic bourse, the KRW-USD rate closed the week down due to month-end dollar selling volume.
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.