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: 1,300 – 1,325 KRW per 1 USD
This week’s forecast:
Investors are expected to take a wait-and-see approach ahead of the Fed’s policy meeting on the 26th to 27th. The Fed is forecast to lift interest rates by 75bp but less likely to adopt a more hawkish tone at the meeting. Given these circumstances, the greenback is expected to rise at a little bit slower pace than recently.
In view of dollar-selling volume at the end of the month, dollar supply could outstrip demand, pushing down the KRW-USD rate. But any sharp drop will be curbed by strong settlement demand.
Last week’s trend:
The Korean won-U.S. dollar (KRW-USD) exchange rate opened the week down as risk appetite picked up, influenced by a decline in the expected inflation rate in the U.S. and Federal Reserve officials’ remarks that helped dampen market expectations of a 100bp rate hike.
At mid-week, the KRW-USD rate slid further on news that the European Central Bank considered raising interest rates by 50bp. Other factors pushing down the rate include Russia’s resuming gas supplies along Nord Stream.
Later in the week, the KRW-USD rate edged up on settlement demand and short covering after the 4th consecutive day of decline. Following the ECB’s larger-than-expected rate rise, the euro turned lower, while the greenback rebounded.
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.
