KB Securities Projects KRW/USD Exchange Rate Range of 1350-1450 Won

KB Securities has forecasted that the KRW/USD exchange rate will fluctuate within the range of 1350 to 1450 won. This is analyzed to be around the time when the inflow effect of SK Hynix's American Depositary Receipts (ADRs) concludes. Currently, the exchange rate is fluctuating around the high 1300s, approximately 1380 won. After falling from the mid-1500s in early July, it has stabilized in the high 1300s. KB Securities explained that the inflow of dollars related to SK Hynix ADRs and the weakening of foreign stock selling pressure are the reasons behind the decline in the exchange rate. Additionally, domestic investments in U.S. stocks turned to net purchases in June and increased to 4.6 billion dollars in July. Foreign selling in the domestic stock market decreased from around 40 trillion won in May and June to an average of 10 trillion won in July and August. Researcher Oh Jae-young mentioned that if foreign selling in the stock market resumes, there is a possibility that the exchange rate could rebound to the 1400 won level. The Bank of Korea has raised the base rate to 3.00%, and it is analyzed that the interest rate hike is unlikely to act as a factor for a strong won in the short term. However, it is expected that the difference in monetary policies between Korea and the U.S. could act as a factor for a strong won in the fourth quarter.

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