The USD to KRW exchange rate is currently mildly bullish, with some potential for fluctuation in the near term.
Key drivers include the interest rate policies from both the Federal Reserve and the Bank of Korea. Predictions indicate the Federal Reserve may implement three additional rate cuts by mid-2026, which could weaken the USD. Meanwhile, the Bank of Korea is worried about inflation and plans to stabilize the KRW through various measures, even as its currency remains under pressure.
In the near term, expect the USD/KRW to trade within a stable range, reflecting its recent pattern of limited movement.
An upside risk could arise if global economic growth accelerates or commodity prices rise, bolstering demand for the KRW. Conversely, a downside risk includes an unexpected shift in U.S. monetary policy or continued dollar strength, both of which could pressure the exchange rate further against the KRW.