Summary
- Citibank Korea said it expects the won-dollar exchange rate to fall to about 1,500 won within the next three months.
- Kim Jin-wook, Citi’s chief economist, said the exchange rate would fall to about 1,500 won, helped by market-stabilization measures, currency hedging by the National Pension Service and strong semiconductor exports.
- South Korea’s foreign-exchange reserves rose slightly to $427.36 billion at the end of last month, which the Bank of Korea said reflected market-stabilization measures including a foreign-exchange swap and an increase in financial institutions’ foreign-currency deposits.
Forecast Trend Report by Period
Citibank Korea said on July 3 it expects the won-dollar exchange rate to fall to about 1,500 per dollar within the next three months.
In a report released the same day, Kim Jin-wook, Citi’s chief economist, wrote that market-stabilization measures, currency hedging by the National Pension Service and strong semiconductor exports would help drive the won-dollar rate down to about 1,500 per dollar over that period. In Seoul trading on July 3, the won opened at 1,544.5 per dollar, down 11.3 won from the previous session.
South Korea’s foreign-exchange reserves stood at $427.36 billion at the end of June, up $370 million from $426.99 billion at the end of May, according to the Bank of Korea. The central bank said reserves rose slightly despite market-stabilization measures including a foreign-exchange swap with the National Pension Service, citing an increase in financial institutions’ foreign-currency deposits.
Lee Su, Hankyung.com reporter, 2su@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.