Kiwoom Securities "NDF Dollar/Won Exchange Rate Expected to Start Falling for 1-Month Contract"

[Asia Economy Reporter Yoonju Hwang] Kiwoom Securities forecasted on the 3rd that the USD/KRW exchange rate would show a downward trend due to the rise in the New York stock market and the weakening of the US dollar.

Yumi Kim, a researcher at Kiwoom Securities, stated, "In the New York offshore non-deliverable forward (NDF) market, the 1-month USD/KRW exchange rate is expected to start 5 won lower at 1201.15 won."

Researcher Kim explained, "Despite weak economic indicators, the US dollar declined as the New York stock market rose, risk aversion eased, and the euro strengthened."

She noted, "The US January Institute for Supply Management (ISM) manufacturing index fell compared to the previous month, and January ADP private employment decreased by 301,000, falling short of market expectations."

Researcher Kim analyzed, "However, as the New York stock market rebounded, risk aversion eased, and some selling pressure followed the recent dollar strength, the dollar declined."

She added, "Additionally, the euro strengthened as the Eurozone consumer price inflation rate for January rose 5.1% year-on-year, leading to expectations that the European Central Bank (ECB) would face pressure on its monetary policy (interest rate hikes)."

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