The exchange rate forecast for the KRW to USD reflects a complex interplay of factors influencing both currencies. Recently, the US dollar has appreciated due to a hawkish sentiment surrounding the Federal Reserve’s interest rate policies. Analysts noted that while the Fed cut rates as anticipated, comments from Fed Chair Jerome Powell suggest that further cuts are uncertain, signaling potential strength for the USD moving forward. Anticipation of speeches from Fed policymakers could provide additional support for the dollar.
In contrast, the South Korean won faces headwinds that may further weaken its exchange rate against the US dollar. The Bank of Korea's foreign exchange interventions—selling a net $800 million in Q2—are indicative of the central bank's struggle to stabilize the KRW amidst external pressures. Ongoing trade negotiations with the US have stalled, creating uncertainty that might exert downward pressure on the won. Additionally, forecasts indicate that the Bank of Korea may lower its growth outlook for 2025 to 1.5%, contributing to the projection of the KRW/USD exchange rate potentially reaching 1,430 within the year.
Current price data shows the KRW to USD trading at 0.000700, 1.8% below its three-month average of 0.000713, suggesting a stable yet cautious trading environment within a 4.3% range. As the market continues to absorb new information, the outlook for the KRW against the USD remains delicate, with ongoing economic and geopolitical developments likely to shape future exchange trends.
