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: 1,145 – 1,159 KRW per 1 USD
This week’s forecast:
Strong U.S. corporate earnings and an improved domestic manufacturing PMI index are forecast to help the tapering issue emerge and drive up the greenback. But the Fed’s possible repeated remarks on ‘temporary’ inflation ahead of the Federal Open Market Committee (FOMC) meeting is expected to limit the greenback’s rally. In addition, amid a perception that the KRW-USD rate has reached its peak, dollar-selling by exporters will support the rate’s upper limit.
Last week’s trend:
With risk aversion growing in the global financial market amid a surge in Covid-19, the Korean won-U.S. dollar (KRW-USD) exchange rate opened the week up, on the back of foreign net selling on the Seoul bourse. Amid worries over the global spread of the COVID Delta variant, risk aversion remained high, and the KRW-USD rate trended upward. But as foreign net buying increased on the Seoul bourse, it turned downward.
At mid-week, with the spread of Covid-19 showing no sign of letting up, the Korean won weakened as a result of foreign net-selling on the domestic stock market and news of Korea’s large trade deficit for the first 20 days of July.
Amid recognition that Covid-19 worries were excessive, strong U.S. corporate earnings sent Wall Street higher. Under such conditions, the KRW-USD rate turned downward. But with risk aversion growing amid the spread of the Delta variant, the KRW-USD rate moved in sync with the weaker Chinese yuan. As the week ended, the rate’s upper limit was supported by expanded dollar-selling volume by domestic exporters.
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.