Korean Job Discussion Forums

[MANDRL]

So, I need to transfer about 9,000,000 won to my US bank. The won-dollar exchange rate has grown less in my favor for the past few days. Is this because of the election? Should I wait to transfer the money after the election? I need to transfer by Friday. Any advice? Thanks!

[bobbyhanlon]

since the election is basically a foregone conclusion, any impact on the won will probably already be priced in. so, it won't make any difference either way.

[victorology]

The reason why the dollar has been gaining in value is because of the economic outlook in the U.S.

A recession is looming for the American economy and what that usually means is lower interest rates. Lower interest rates mean a weaker dollar. This past week, inflation data came out for the U.S. and it looks to be rising at a greater pace than expected. Higher inflation means the central bank won't want to lower interest rates. Lower interest rates mean more inflation.

So the situation was:

Recession looming. Fed to cut interest rates to help stimulate the economy. Dollar gets weaker.

Now it changed to:

Recession still looming. Inflation is up. Feds hands are tied because lowering interest rates, while boosting the economy, will cause more inflation. Dollar gets stronger based on outlook that the Fed won't be as aggressive with interest rate cuts.

It has nothing to do with the election.

[MANDRL]

[SeoulFinn]

j/k Transfer your money after the election, but before the president is indicted and sent to prison. j/k

[Milwaukiedave]

I agree with Victor, I've heard the stronger dollar is just a temporary thing. Likely, the strength will be short lived and the won will appreciate back closer to 900 to the dollar.