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: 1,155 – 1,175 KRW per 1 USD
This week’s forecast:
The Fed’s dovish speech at the Jackson Hole conference helped weaken the greenback over the short run, which is likely to affect the market across the board.
With the KRW-USD rate’s floor supported by the perception that the rate has hit the bottom, geopolitical risk relating to Afghanistan is forecast to further support the rate’s floor.
Last week’s trend:
The Korean won-U.S. dollar (KRW-USD) exchange rate opened the week down, influenced by the Fed’s monetary easing stance and the resultant higher risk appetite and rise on Wall Street. As the possibility of tapering lessened at the Jackson Hole symposium, stocks picked up at home and abroad, causing the KRW-USD rate to plunge further.
At mid-week, volatility appeared limited amid wariness ahead of the Bank of Korea’s policy meeting. But as the number of coronavirus cases surpassed 2,000 in Korea, the rate turned upward.
Later in the week, with the greenback weakening, the KRW-USD rate turned sharply down after the Bank of Korea decided to raise the benchmark interest rate. Then, reduced demand for risky assets amid falling stocks in Asia drove up the KRW-USD rate. After a continued upward trend, the rate closed the week down on expectations of continued easing as shown at Jackson Hole.
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.