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:
No factors that can determine the direction of currencies exist and investors are taking a wait-and-see approach ahead of the Federal Open Market Committee meeting. Against this backdrop, the KRW-USD rate is predicted to move within a limited range.
The Fed’s dovish stance and the strong yuan are among factors driving up the Korean won. But a possibility that many Fed officials would support reducing the bond-buying program is likely to help strengthen the greenback for the time being.
Last week’s trend:
With the US dollar weakening as a result of the US non-farm payrolls increase well short of the analysts’ forecast, the Korean won-U.S. dollar (KRW-USD) exchange rate opened the week down, influenced by higher demand for risky assets on Seoul bourse. As volatility eased amid a weak dollar trend, the rate inched up on the back of settlement demand.
At mid-week, as US Treasury yields turned higher, rising expectations of inflation and Federal Reserve officials’ remarks about tapering sent the greenback up, leading to a surge in the KRW-USD rate.
Coupled with a strong US dollar, foreign net sales in the domestic stock market helped the KRW-USD rate continue its upward trend. Yet, any sharp rise was curbed by the European Central Bank’s weighing slower bond purchase and South Korean shipbuilders’ winning a large quantity of orders. Later in the week, the Korean won moved in sync with the yuan’s rally after the latest phone call between presidents in the U.S. and China and then remained steady with an upward tendency before closing 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.