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 – 1,125 KRW per 1 USD
This week’s forecast:
Sluggish U.S. non-farm jobs indicators are expected to weaken the greenback, but expectations about the Biden administration’s stimulus plan may bring long-term interest rate hikes and strengthen the greenback. While the dollar’s direction remains to be seen, stronger dollar-selling sentiment before the Lunar New Year holiday in Korea may push down the KRW-USD exchange rate slightly.
Last week’s trend:
The Korean won-U.S. dollar (KRW-USD) exchange rate opened the week up, amid strong risk-averse sentiment stemming from falling U.S. stock prices, but the KRW-USD rate then fell due to a bullish Chinese currency and foreigners’ net buying on the domestic stock exchange. Later, the KRW-USD rate changed direction, turning upward due to greater uncertainty, amid signs that the U.S. stimulus package would shrink.
At mid-week, stronger risk-on sentiment amid a rising KOSPI index turned the KRW-USD rate downward, but the bearish Chinese yuan resulting from sluggish Chinese PMI indicators limited the rate’s bottom line.
At the end of the week, as the U.S. Senate approved fast-tracked Covid-19 aid, expectations of an economic recovery grew and the greenback became bullish. Influenced as well by the weak euro, the KRW-USD exchange rate closed the week up.
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.