Korean won (KRW) fell against the USD last month, as explained by an analyst at MUFG. They forecasted that the pair will experience a downward trend for the remaining of this year and that it will be at 1150.0 by the third quarter, and that its value will be at 1145.0 by the end of this year.
The Supporting Factors
There has been an increase in the figure of daily recorded cases of Covi-19 in South Korea, ever since middle 14,518 new cases were recorded in the country as of 27th January, surpassing the last peak during middle December last year which was 7,850 recorded cases. The covid-19 condition forced the KOSPI to fall by 11% and January’s financial market sense was considerably low.
Though the country is experiencing worsened pandemic circumstances, the country’s economy displayed a quick recovery in exporting and construction works. South Korea export rose powerfully by 22%yoy during the first twenty days of last month, moving up from 20% in December. Increased exportation to the United State of America increased in momentum by 8.9ppts to 28%yoy. Production-wise, semiconductors, a very important export, rose by 28.5%yoy. The country’s consumer sense lifted.
The South Korean government has put in place new standards, which include expanded quick testing that will help to stop the spread of very communicable Omicron variants. In addition, on the 21st of last month, the country suggested an additional budget of 14 trillion KRW to aid small and micro traders who were affected by the lengthened Covid-19 handling standards as a result of the prolonged pandemic.
Going by all of these happenings, we anticipate USD/KRW to fall to 1,175 by the end of the first quarter of this year.
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