The market bias for the USD to KRW exchange rate is bearish.
Key drivers influencing this trend include the anticipated interest rate cuts by the Federal Reserve, which may weaken the USD further, and persistent concerns from the Bank of Korea about inflation risks tied to a depreciating KRW. Additionally, increasing global economic growth could prompt volatility in currency exchanges.
Over the next 1-3 months, the expected trading range for the USD/KRW is likely to remain within a stable band near current levels, influenced by recent price movements situated between 1408 and 1481.
An upside risk could emerge from unexpected strong economic data from the U.S., potentially reversing the bearish trend for the dollar. Conversely, a downside risk may stem from aggressive measures by the Bank of Korea to stabilize the KRW, possibly leading to further depreciation of the USD against the KRW.
