What is USD/KRW?
The USD/KRW forex currency pair represents the exchange rate between the United States dollar and the South Korean won. For instance, when the USDKRW exchange rate stands at 1323, it denotes that one US dollar holds a value equivalent to 1323 South Korean won.
The South Korean won (KRW) is the official currency of South Korea. It is issued and regulated by the Bank of Korea, which is the country's central bank.
The US dollar is the most traded currency in the world, held by most central banks and investment institutions, and used as the official currency in several nations, including Ecuador and El Salvador. Due to the stability and dependability of the US economy, the dollar is the currency of choice for international transactions and reserves. In addition, the dollar's dominance in international trade has significant implications for exchange rates and economic policies worldwide, and it can serve as a benchmark for nations that choose to set or peg their currencies to the dollar's value. It is issued and regulated by the US Federal Reserve.
What affects the price of the USD/KRW pair?
The exchange rate of the South Korean Won against other currencies can fluctuate due to various economic factors, including interest rates, inflation, trade balances, and geopolitical events.
South Korea has a global reputation for technological innovation, with well-known tech giants like Samsung and LG. Their performance can affect investor confidence and the currency's value against other currencies. South Korea is a significant player in the global export market, particularly in industries like electronics, automobiles, and shipbuilding. The performance of these sectors can impact the country's trade balance and its currency's value.
Economic trends in major trading partners such as China and the United States can have significant effects on the South Korean won.
What to watch out for when trading USD/KRW?
When trading the USDKRW forex pair (the US dollar against the South Korean won), there are several factors to watch out for. Here are some key considerations:
- US Federal Reserve and Bank of Korea monetary policy decisions, such as interest rates, which aim to tackle inflation
- The Consumer Price Index (CPI) growth data reveals the inflation figures for both the United States and South Korea
- US and South Korea’s Employment Data
- US and South Korea’s Trade Balance
- US and South Korea’s Gross Domestic Product (GDP)
- Chinese economic data