iM Securities "This Week's KRW-USD Band Forecasted at 1370~1420 Won"

Focus on the Trend of the 10-Year U.S. Treasury Yield

iM Securities forecasted the won-dollar exchange rate band to be between 1,370 won and 1,420 won on the 18th.

Park Sang-hyun, a researcher at iM Securities, stated, "The trend of the U.S. 10-year Treasury yield will play an important role in the dollar's movement for the time being."

Park predicted that the exchange rate would emerge as a major issue with the re-launch of the Donald Trump administration, as Trump places a core focus on resolving trade imbalances.

Last week, the U.S. designated Korea as a currency 'watchlist country.' Park evaluated, "While the watchlist designation has a somewhat positive effect by alleviating concerns about a 'king dollar,' it ultimately implies that U.S. trade pressure on Korea could intensify." This means a considerable burden factor for future exports to the U.S.

He added, "It is necessary to pay attention to how the watchlist issue will affect the value trends of major currencies, including the won," emphasizing, "The trend of the U.S. 10-year Treasury yield, which has been fluctuating around 4.4%, is a key variable."