The KRW is currently in a bearish trend against the USD.
Key drivers include:
- The Bank of Korea's inflation concerns push expectations for further depreciation of the KRW, especially if it remains around the 1,470 level against the USD.
- Interest rate policies contribute to ongoing weakness in the KRW, with the Bank of Korea indicating measures to stabilize the currency and attract foreign investment.
- Global economic growth and rising commodity prices may support the USD, putting additional pressure on the KRW.
In the near term, the KRW is expected to trade within a stable range relative to recent prices. Forecasts suggest it could remain between 1,440 and 1,500 per USD.
Upside risks include potential interventions by the Bank of Korea to strengthen the KRW, while downside risks stem from expected USD weakness due to potential Federal Reserve interest rate cuts.