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: 1,175 – 1,195 KRW per 1 USD
This week’s forecast:
Investors are likely to shun risky assets on news that Evergrande Group was halted in Hong Kong stock trading.
In addition, amid expectations of higher inflation in the U.S., rising yields on the U.S. Treasury bonds will reduce demand for risky assets. Under such conditions, greater foreign net selling on local bourse is forecast to drive up the KRW-USD rate.
Last week’s trend:
The Korean won-U.S. dollar (KRW-USD) exchange rate opened the week slightly up as concerns over a default of China’s Evergrande Group returned to the forefront and the Federal Reserve reaffirmed its hawkish stance. But a U.S. political risk relating to a stalemate over raising the country’s debt ceiling pushed up the rate sharply. It then inched down amid foreign exchange authorities’ stronger wariness.
Later in the week, after the Federal Reserve chair Jerome Powell said supply-chain bottlenecks could lead to a somewhat longer interval of high inflation, helping the U.S. interest rates continue to move up, the KRW-USD rate turned upward. Though any sharp rise was curbed by dollar-selling volume from exporters, the rate closed out the week up, influenced by risk-averse sentiment in Asian countries and the resultant increase in net foreign selling on Seoul bourse.
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.