Korea Exchange Rate

Korea

Korea: Korean won continues on upward trajectory

May 30, 2014

The Korean won (KRW) is continuing on its relentless increase against the U.S. dollar and the Japanese yen, reflecting the country’s strong economic recovery and the current account surplus. The won, which has broken through to multi-year highs in recent months, traded at KRW 1,020 per USD at the end of May, which was 1.3% stronger than the level observed at the end of April and 9.5% stronger than the level in the same month last year. Moreover, the Korean currency appears to be on an unstoppable upward path, having reached yet another record-high this time of KRW 1,015 per USD on 11 June and thus moved toward the KRW 1,000 per USD psychological floor.

Market analysts have occasionally suspected that Korean monetary authorities were intervening in the country’s foreign exchange market with the latest intervention presumed to have occurred in mid-May. The authorities’ limited ability to use currency-market intervention to stem the appreciation of the won, reflects the strength of the underlying upward pressures.

FocusEconomics Consensus Forecast panelists expect the won to trade at 1,029 KRW per USD at the end of 2014. For 2015, the panel sees the Korean currency trading at 1,020 KRW per USD.


Author:, Senior Economist

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Korea Exchange Rate Chart


Korea Exchange Rate June 2014

Note: Daily spot of won (KRW) against U.S. dollar (USD).
Source: Thomson Reuters.


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