The South Korean won was around the 1310 per USD in August, close to low levels not seen since late June, prompted by a general dollar strength amid lingering concerns about the global economic recovery, specially in China, while the US economy continues to prove resilient compared to other major peers. In South Korea, the GDP expanded 0.6% on quarter in the three months to June but exports remain subdued due to weak China demand. At the same time, the South Korean currency has been influenced by capital outflows, partly due to the fact that the Bank of Korea last raised interest rates in January and has maintained borrowing costs at a consistent level since then. In contrast, the Federal Reserve in the US could deliver at least one more rate hike this year.
Historically, the South Korean Won reached an all time high of 1995 in December of 1997. South Korean Won - data, forecasts, historical chart - was last updated on August of 2023.
The South Korean Won is expected to trade at 1346.91 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 1423.47 in 12 months time.