The USDKRW pair is an exotic pair consisting of the US dollar (USD) as the base currency and the Korean won (KRW) as the quote currency. This pair is relatively easy to trade due to its predictable price movements. USDKRW shows how many KRW are needed to purchase one USD.

What is USDKRW?

The United States and South Korea have tremendous commercial relationships, so the USDKRW index is one of the most active in the forex table. Both countries established their long-term relationships after the end of the Korean War in the 1950s, and they supported each other to ensure no danger from the North Korean rogue state. The USDKRW index shows the relative strength of the US Dollar against the South Korean Won. It is an index to show the current flow of money from the American economy to the South Korean one. Many American industries have factories in South Korea. Many cars and other high-tech devices are produced in South Korea and exported to the United States. That creates a certain dynamic for the South Korean Won and the relative forex market duo with the US Dollar. The USDKRW runs daily, and it never stops through the night. You are free to invest as an independent investor. However, most investments in this forex index come from mutual and retirement funds. It is known that you need to be patient in the forex market and only buy when you want to hold a specific position for the long term. After a few months or years, you may receive your initial capital with a markup on your investment, which would be your profit.

How does USD to KRW work?

The currency pair works by trading on various platforms, like SimpleFX. First, the trader needs to open an account. SimpleFX provides a demo account where investors can learn how to trade USDKRW. It gives access to the simulation of real-time market conditions without financial risks. The USD to KRW market works daily. Traders can invest in it by opening an account on the SimpleFX platform. There is the chance to put a call option to enter the index only when it reaches a certain level. Even though the USDKRW fluctuations exist, it could be better to make it happen daily.

Current Dollar Won exchange rate

The current Dollar Won exchange rate is subject to fluctuation due to the volatility of the forex market. Investors can check it on the chart or the SimpleFX Webtrader platform.

USDKRW: Dollar to Won chart

Traders can check the Dollar to Won chart on the SimpleFX platform and above the instrument description. The USDKRW chart can be used to analyze the potential changes during the previous economic events that might have affected the price of the asset.

USDKRW price history

Here is the latest historical performance for the USDKRW index:

2018: The index was close to 1,120 Korean Wons for 1 US Dollar. That trend was for many years, as both countries had low inflation and unemployment rates. These countries also have mutual agreements to allow their citizens to work in both countries, so the USDKRW forex index remained relatively stable at the same amount of money.
2019: Since 2019, there has been some overprinting of Korean won by the Korean Central Bank. That gave an upward trend to the USDKRW index, which went up to 1,165 Korean Wons for 1 US Dollar. The Korean Won needed a trend to reach a better rate with the US Dollar, and Korean exports became profitable again for US customers in 2019.
2020: The pandemic had a significant impact on the Korean economy in 2020. The loss of exports created an upward movement in the USDKRW index, which went close to 1,220 Korean Wons for 1 US Dollar. However, that price started to cause issues for American manufacturers since it was now more profitable to get everything from Korea and forget about the American domestic market.
2021: In 2021, the index plummeted again, close to the range of 1,181 Korean Wons for 1 US Dollar. That might signal the start of the Korean economy to increase interest rates and gather many investors in the Korean currency.
2022: Finally, in 2022, the index price rose to a historic high of 1,407 Korean Wons for 1 US Dollar. That happened mid-year when the FED almost doubled the overnight interest rates for the US Dollar. That created an almost instant movement of all capital to the US Dollar and the Korean Won as all the other currencies lost their value against the currency of the United States.

Investors should remember that historical data does not guarantee the prediction of future USDKRW price fluctuations.

Exchange rate Dollar Won

Exchange rate Dollar Won depends on factors such as interest rates, monetary policies, geopolitical events, etc. Whether USDKRW is a good investment depends on analyzing these factors and the potential returns on investment. If the factors are also stable and there are more chances of return, this currency pair brings more interest from investors worldwide.

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