American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Investing

USD/KRW forecast: Here’s why Korean may rebound to 1,400

by admin December 27, 2024
December 27, 2024
USD/KRW forecast: Here’s why Korean may rebound to 1,400

The South Korean won has crashed to a record low as the US dollar gained momentum and the country’s political crisis remained. The USD/KRW exchange rate rose to a high of 1,486, a record high, and then pared back some of these gains to 1,470.

South Korea political and economic crisis

The USD/KRW pair has soared because of the ongoing South Korean economic and political crisis.

The political crisis culminated in the impeachment of the last South Korean President, Yoon Suk Yeul for declaring a state of emergency. 

Han Duck-Soo, the acting resident since December 14, replaced him. Now, there are signs that the country’s opposition party is working to impeach Soo for his actions during the state of emergency. 

Duck-Soo was the prime minister then and will likely be accused of being an accomplice to Yeul. If he is impeached, and if Yeul loses during the constitutional court, it means that South Korea will go to an election in the next 60 days.

Therefore, the South Korean won has plunged because of the potential political uncertainty in the country. 

The USD/KRW pair has also surged because the economy is not doing so well because of Samsung, the biggest company in the country. Samsung Electronics’ stock price has crashed by almost 40% from the highest point this year as it continued to lag behind other semiconductor giants like Taiwan Semiconductor and NVIDIA on artificial intelligence. 

Samsung’s performance is important because it accounts for about 22.4% of the country’s GDP and employs over 130,000 people. 

Other South Korean companies are facing challenges because of the resurgence China, which has now become a leading player in the auto industry. That will ultimately affect companies like Hyundai, Renault, and Samsung, which sell many vehicles abroad. 

The most recent data showed that South Korea’s economy barely grew in the third quarter as its exports dropped. Consumer spending growth partially offset exports as wages in the country grew.

Therefore, the South Korean central bank will likely maintain robust expansionary policies in the next few months. It has already pumped over $47 billion to the economy and started cutting interest rates. It lashed rates to 3%, and analysts see more cuts happening soon.

The USD/KRW pair has also surged because of the ongoing strong US dollar. The dollar index, which tracks the greenback against several developed world currencies, has jumped to the highest level in over two years after the hawkish Fed. US bond yields have also soared, a sign that investors anticipate the Fed to be more hawkish. 

The South Korean won’s plunge is also in sync with other emerging market currencies like the Brazilian real and Indian rupee that have reacted to Donald Trump’s election. 

USD/KRW technical analysis

The daily chart shows that the USD/KRW exchange rate has been in a strong uptrend this year and now sits at a record high. It has jumped above the key resistance level at 1,400, the highest swing in April this year.

The pair has constantly remained above all moving averages, which is a positive sign. Also, the Relative Strength Index (RSI) and the Stochastic Oscillator have all pointed upwards and become overbought.

Therefore, the most likely scenario is where the South Korean won rises gradually rises as these concerns continue. The pair will then drop in 2025, potentially to the support at 1,400. This is a common occurrence, where an asset makes a strong bullish breakout and then resumes the downtrend and retests the key support level. 

The post USD/KRW forecast: Here’s why Korean may rebound to 1,400 appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
RGTI, QSI, QMCO, IONQ stocks are surging: time to short them?
next post
Here’s one reason why the SPY, QQQ, DIA ETFs may plunge in 2025

Related Posts

Bitcoin Well Announces Instant Buy in the USA...

March 13, 2024

Hang Seng, Shanghai Composite on edge as China...

January 10, 2025

E-Power and Battery Developer Volt Carbon Technologies Join...

February 6, 2024

The Gap stock price could drop 35% as...

November 30, 2024

Nio stock price may surge 75% in 2025:...

February 17, 2025

Energy Fuels

April 28, 2024

DraftKings stock price inverse H&S points to a...

November 13, 2024

Can XRP price reclaim $3? Exploring key catalysts...

February 7, 2025

New Dog-Leg Target Delivers Increase to Ewoyaa MRE

July 30, 2024

Best crypto to buy as Fed officials hint...

June 24, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Kraft Heinz plans breakup, weighs $20 billion grocery spin-off: report

      July 13, 2025
    • Trump’s 50% tariff on Brazil imports to brew trouble for Starbucks and Dutch Bros

      July 13, 2025
    • US to announce 30% tariff on EU and Mexico says Trump

      July 13, 2025
    • Why India is rushing to build bigger banks and what’s standing in the way

      July 13, 2025
    • Wall Street braces for weakest earnings season since 2023 amid market highs

      July 13, 2025

    Categories

    • Business (3,388)
    • Investing (2,615)
    • Latest News (2,017)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved