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: 1,135 – 1,155 KRW per 1 USD
This week’s forecast:
The Bank of Korea’s hawkish position is forecast to support a rally of the Korean won. The dollar-selling volume will serve as another upward factor for the Korean currency. But given the Covid-19 Delta variant’s global spread, which helps to strengthen the greenback, and dampened investment sentiment due to the resurgence of Covid cases in Korea, the Korean won is expected to weaken. Under these circumstances, the Korean won is forecast to remain weak overall for the time being.
Last week’s trend:
Despite continued concerns over the spread of Covid-19, the Korean won-U.S. dollar (KRW-USD) exchange rate opened the week slightly down as the market’s risk appetite recovered on the back of a U.S. stock rally. With a risk-on preference prevailing on the Seoul bourse, as well, the KRW-USD rate declined amid greater net foreign buying on the local bourse.
At mid-week, in reaction to growing concerns about inflation sparked by a surge in the U.S. consumer price index, the KRW-USD rate climbed above 1,150. The rate then shed some of its earlier gains and fell to the upper-1,140s due to the perception that the rate had reached its peak and the resultant increase in dollar-selling volume.
Coupled with the Federal Reserve’s hawkish stance, Fed Chair Jerome Powell’s reaffirmation of monetary easing the previous day drove down the KRW-USD rate substantially. Later in the week, the rate, which had started the week up, turned downward before the end of the week, influenced by the Bank of Korea Governor’s speech at the National Assembly reconfirming the central bank’s hawkish stance.
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.