Tuesday, March 14, 2017

"US interest rates influential 'won / dollar exchange rate pressures



[Korea Jeongseon financial newspaper reporters - the US central bank, the Federal Reserve (Fed) this coming 14 to 15 (local time) in fact show to raise its policy rate at the Federal Open Market Committee (FOMC) to receive the won / dollar exchange rate pressures that is observed.

14 days ago against the won / dollar hwanyulneun trading day closing price at the Seoul foreign exchange market ended the trading 4.4 1148.8 won the right circle. The won / dollar rate was 4.0 open source right 1148.4 won from the previous trading day.

In this FOMC Fed is highly expected that the current annual increase of 0.25 percentage points 0.50~0.75 percent policy rate. This seems to be major normalization of monetary policy pressures lead to a rise in interest rates as a big trend.

Sindongsu Eugene Investment & Securities Fixed Income Strategy analysts' March FOMC will forecast the number of results, including jeomdopyo (dot plot) of Fed members than the rate hike is influence the interest rate flow 'saying' short-term interest rates declined available at the time of the American outlook the Fed's year three times impression One major consideration when interest rates gyeonggyegam and the central bank to normalize monetary policy, pressure bonds rising flow rate is unchanged, he said.

When leaving the interest rate gap chase the money won / dollar exchange rate is likely to climb.

According to the Korea Financial Investment Association, the exchange rate index was off 8.0 points from 80.0 in the delivery. While the proportion of respondents expect the exchange rate fell 8.0 percentage points lower than the transfer rate rises to 4.0% responder rate was significantly higher with 24.0% as delivered.

However, foreigners in the domestic stock market sunmaesuse, negotiated exporters (USD selling) volume is a limiting factor in the exchange rate. Kiwoom Securities analyst Kim Yoo-mi explained that "foreign investors are considering viscosity to record net buying in the securities market, the won / dollar rate rise will be minimal.

'Currency manipulator' specifies the possibility of playing the US administration policy also it seems to be a new variable to the exchange variation. At LG Economic 'direction of Trump policy and the dollar's researchers report Choi munbak responsible researchers' dollar a background showing a volatility has caused a stimulus eventually trump concerns about the artificial intervention likely US economic recovery expectations and currency manipulator specified is perched 'said' and predicts the future, it seems to be the direction of the dollar largely influenced by the effectiveness and sustainability of Trump policy.

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