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: 1,120 – 1,135 KRW per 1 USD
This week’s forecast:
Last week, as worries over inflation emerged again, the Fed reaffirmed its commitment to maintaining an easy-money policy, which is expected to ease inflation concerns. Such conditions are likely to boost demand for riskier assets.
An increase in heavy industry orders is expected to help drive down the KRW-USD rate. But the possible expansion of foreign net selling on the Seoul stock exchange will support the rate’s floor.
Last week’s trend:
Despite the fact that U.S. jobs data came in well below expectations, the greenback opened the week down, fueled by expectations that the Fed would maintain its loose monetary policy. Later, the shock from the jobs report eased up somewhat, but the Korean won-U.S. dollar (KRW-USD) rate turned upward as foreign investors turned to net sellers after the NASDAQ plunged.
At mid-week, amid wariness ahead of the announcement of the U.S. CPI (consumer price index), the dollar strengthened. Later in the week, with the CPI climbing faster than expected, the KRW-USD rate continued to rise on concerns about inflation and the NASDAQ’s sharp fall. Ultimately, with foreigners’ remittance demand helping push it upward, the KRW-USD rate closed out the week at 1,130.
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.