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: 1,190 – 1,220 KRW per 1 USD
This week’s forecast:
With U.S. employment indicators having improved markedly, stronger risk-on sentiment is expected in the market, and the Korean won is forecast to become bullish this week. Nevertheless, despite less financial instability in a global market, continued foreign-investor volatility in the domestic market will limit the KRW-USD rate’s floor this week.
Last week’s trend:
Early this week, as the U.S.’s response to the Hong Kong security law was not egregious, Korea’s domestic trade balance posted a surplus, and news of a possible coronavirus vaccine was emerging, the Korean won-U.S. dollar (KRW-USD) exchange rate dropped sharply.
Despite the continuing trade dispute between the U.S. and China as well as growing protests over George Floyd in the U.S., the KRW-USD rate’s ceiling was limited by a rising KOSPI and large-scale shipping contracts. At mid-week, amid widening protests and looting in the U.S., the rate moved in line with the strong Chinese yuan.
But later, due to expectations of the resumption of economic activity in major countries, the KRW-USD turned downward. At the end of the week, European and New York stock markets rose over the European Central Bank’s decision to increase PEPP (Pandemic Emergency Purchase Programme) asset-buying by EUR 600 billion, and higher hopes of an economic recovery turned the KRW-USD exchange rate downward to the 1,210 won level to close out the week.
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.