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:
In spite of upbeat U.S. data, expectations about inflation dropped off somewhat as U.S. Treasury yields dropped to the mid-1.5% range. These conditions are forecast to affect the weakening of the greenback. In addition, U.S. Treasury’s decision to keep South Korea on a list of countries monitored for currency practices does not appear to help strengthen the greenback in the domestic FX market. Under such conditions, buying the dips is likely to support the KRW-USD exchange rate’s bottom line
Last week’s trend:
The Korean won-U.S. dollar (KRW-USD) exchange rate opened the week up, as the greenback strengthened on the back of a pickup in U.S. producer inflation and the ensuing rise in US Treasury yields. The greenback continued to be supported by U.S. Treasury yields that approached 1.7%. Against this backdrop, dividend remittance demand helped push up the KRW-USD rate.
At mid-week, the KOSPI fell sharply due to eased concerns about U.S. inflation, but demand for dividend remittance supported the exchange rate’s floor.
Despite expectations about U.S. inflation, the market’s risk appetite grew after U.S. Treasury yields slid to 1.5%. Nevertheless, a buying spree in reaction to the previous day’s plunge caused the KRW-USD exchange rate to increase. Later in the week, the fall in U.S. Treasury yields sparked demand for riskier assets, but dividend remittance by Samsung Electronics supported the rate’s floor before the week closed out.
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.