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: 1,295 – 1,305 KRW per 1 USD
This week’s forecast:
With the greenback maintaining its strength amid recession fears and risk aversion, the market sees 1,300 as the possible level. But, if the KRW-USD rate re-enters the 1,300s range, the rate’s increase will likely slow.
Major events influencing the KRW-USD rate this week include the release of the Fed’s policy meeting minutes for June and the announcement of the U.S. jobs report. The Fed minutes may reaffirm the central bank’s hawkish stance but will only have a limited impact on the greenback’s strength.
However, as U.S. non-farm payroll data is expected to fall from a month earlier, the direction of the greenback will be affected by mixed factors: risk aversion spurred by recession fears; expectation of the Fed’s scaling back the pace of tightening. Therefore, one is advised to pay attention to which direction the market is heading.
Last week’s trend:
The Korean won-U.S. dollar (KRW-USD) exchange rate opened the week down, influenced by higher risk appetite and the stronger yuan. Another factors driving down the rate include foreign net buying on Seoul bourse and dollar-selling volume from shipbuilding companies.
Around mid-week, the KRW-USD rate turned upward due to recession fears and the ensuing rise in the US dollar. China’s adherence to its zero-Covid strategy also nudged the rate up.
Later in the week, recession concerns and the resultant fall in U.S. Treasury yields caused the KRW-USD rate to trend downward 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.