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: 1,110 – 1,120 KRW per 1 USD
This week’s forecast:
Externally, stabilizing U.S. interest rates is one of the factors driving down the U.S. dollar, much of which, however, will be offset by the U.S. government’s capital-gains tax increase. The Fed’s Federal Open Market Committee (FOMC) meeting slated for this week is expected to reaffirm the Fed’s current stance, thus having a limited impact on the market. As such, this week the KRW-USD rate is forecast to move within a narrow range around 1,115.
Last week’s trend:
Despite a sharp improvement in the U.S. economy, the KRW-USD exchange rate opened the week down, due to a stabilizing of U.S. interest rates. The KRW-USD rate then turned upward on the back of dividend remittance demand. It then moved in sync with the strong Chinese yuan, affected by stabilizing U.S. Treasury yields and the resultant weaker greenback, and China’s expression of opposition to the ‘new Cold War.’
At mid-week, with India’s raging Covid-19 crisis helping to bolster the market’s preference for safe-haven assets, the KRW-USD rate surged on the back of foreign net-selling on the Seoul stock exchange.
Later in the week, stabilizing interest rates in the U.S. following strong demand at a U.S. Treasury auction of 20-year bonds drove down the greenback. But news about a possible hike in the U.S. capital gains tax increased uncertainty on Wall Street. Under such conditions, dividend remittance demand caused the KRW-USD rate to close 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.