This Week's Won-Dollar Exchange Rate Expected at 1,400-1,450 Won... Focus on G20 Finance Ministers' Meeting

iM Securities stated that attention should be paid to the outcomes of the US-Japan and Korea-Japan finance ministers' meetings, which will be held on the sidelines of this week's G20 Finance Ministers' Meeting. The company forecasted the weekly won-dollar exchange rate band to be between 1,400 and 1,450 won per dollar.

Park Sanghyun, a researcher at iM Securities, said in the report "Will the G20 Finance Ministers' Meeting Shake the Foreign Exchange Market?" released on the 21st, "Key variables include whether there will be discussions on mutual tariffs and the dollar at the G20 Finance Ministers' Meeting, as well as whether the US-Japan and Korea-Japan finance ministers will make remarks regarding the yen and the won."

Park noted, "It is known that the US and Japanese finance ministers will discuss correcting the weak yen phenomenon in relation to mutual tariffs, so the outcome of the meeting should be closely watched." He added, "In addition to the yen's trend, whether the yuan will weaken further amid escalating US-China tensions is also an important variable to monitor."

The dollar index, which measures the value of the dollar against six major currencies, has fallen for four consecutive weeks, reaching the 99 level as of the 18th. Park explained, "Although US economic indicators remain solid and there have been hawkish remarks from Federal Reserve Chair Jerome Powell, factors such as stock market instability caused by mutual tariffs, intensifying US-China tensions, and friction between President Donald Trump and Chair Powell have supported the dollar's weakening trend."

During the same period, the euro maintained its strength despite additional rate cuts by the European Central Bank (ECB), and the yen's value rose further on news of the US-Japan finance ministers' meeting. The yuan remained relatively weak and stable.

The won-dollar exchange rate moved within a narrow range and closed at 1,423.6 won per dollar on the 18th. Park commented, "Despite the dollar's weakening trend, the won remained relatively weak and stable due to escalating US-China tensions and net selling of domestic stocks by foreign investors."