The USD to KRW exchange rate is currently range-bound.
Key drivers influencing the market include the U.S. Federal Reserve's interest rate outlook, where a potential shift to rate cuts may weaken the USD. The South Korean government's readiness to stabilize the KRW amid volatility is also significant. Additionally, inflation concerns in South Korea could create pressure on the currency if levels remain high.
In the near term, the USD/KRW is expected to trade within a steady range, reflecting recent behavior around current levels.
An upside risk could arise if the US labor market data suggests stronger job growth than expected, boosting USD demand. Conversely, a downside risk may emerge if the Fed policymakers signal a more aggressive easing stance, which could pressure the USD lower.