Korea Exchange Rate

Korea

Korea: Korean won weakens moderately, but overall trend points to appreciation

July 16, 2014

The South Korean won (KRW) has been strengthening against the U.S. dollar and the Japanese yen since February of this year. In fact, at the beginning of July, after the country released data related to the external sector showing that exports rebounded in June, the Korean won nearly touched the psychological floor of KRW 1,000 per USD. On 3 July, the KRW reached a six-year high against the greenback: the currencies traded at KRW 1,008 per USD. This was 1.4% stronger than the level observed the same day of the previous month and 11.8% stronger than the level observed in the same month last year.

The KRW did, however, lose some of the ground gained and it dropped nearly 1.0% to reach KRW 1,027 per USD on 15 July on suspicions that the Korean Central Bank intervened in the country’s foreign exchange market. In addition, the Korean currency lost strength following the government’s downward revision to the country’s GDP growth outlook for this year from 4.0% to 3.8%.

FocusEconomics Consensus Forecast panelists expect the won to trade at 1,018 KRW per USD at the end of 2014. For 2015, the panel sees the Korean currency trading at 1,017 KRW per USD.


Author:, Senior Economist

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Korea Exchange Rate Chart


Korea Exchange Rate July 2014 0

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


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