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Okie from Muskogee
Joined: 30 Jan 2014
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 Posted: Mon Apr 28, 2014 1:32 am Post subject: Will USD Fall Below 1000? We deserve automatic pay raise! |
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Today, the exchange rate closed at 1034.5 to 1. I believe USD will most likely fall below 1000 within next few months if not weeks. If that happens, it would be an unexpected pay raise in the middle of my contract.
Do you think the won will continue to rally? |
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tob55
Joined: 29 Apr 2007
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| Posted: Mon Apr 28, 2014 1:56 am Post subject: |
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It was at 943 KRW to the dollar when I came ten years ago, so it has finally cycled back to that range again. I was wondering when it would.  |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Mon Apr 28, 2014 4:40 am Post subject: Re: Will USD Fall Below 1000? We deserve automatic pay rais |
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| Okie from Muskogee wrote: |
Today, the exchange rate closed at 1034.5 to 1. I believe USD will most likely fall below 1000 within next few months if not weeks. If that happens, it would be an unexpected pay raise in the middle of my contract.
Do you think the won will continue to rally? |
If the won is "RISING" (in value) to 950/$1 range then you already received a raise.
Before you needed to spend 1,100,000 won to get $1000.
Now you spend 1,034,000 to get $1000.
If you are really lucky you will get a raise to 950 won getting $1000.
What you don't want to see is the won falling to 1400/$1 (like it did in 2008). Back then you had to spend 1,400,000 won to buy $1000.
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tob55
Joined: 29 Apr 2007
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| Posted: Mon Apr 28, 2014 1:45 pm Post subject: |
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The issue tends to depend on which end of the receiving end you are for the 'payout,' at least in my mind. When I came here as I mentioned the KRW was much stronger against the USD so my spending power here was less, but the people sending money back to the USA to pay off their debts were loving it, because they could earn more money in the exchange. For me as a long term resident who transfers money from the USA to my Korean bank, it is not a good thing when the KRW is so strong. However, things do appear to be cyclical, so perhaps this is the up side for some, but also the downside for others. IMHO  |
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Deja
Joined: 18 Mar 2011
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| Posted: Mon Apr 28, 2014 2:33 pm Post subject: |
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| If you came to work in Korea, it makes no sense to send money from the US to Korea , does it?? |
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tob55
Joined: 29 Apr 2007
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| Posted: Mon Apr 28, 2014 2:39 pm Post subject: |
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| Deja wrote: |
| If you came to work in Korea, it makes no sense to send money from the US to Korea , does it?? |
You would think that, but it actually comes from a business account I have that receives funds in USD and is linked to a Korean bank here. It serves as a great mechanism for sending frunds both ways when it is needed without having to pay enormous fees often charged by banks. If I need to make a payment in USD then I just send the money from the account to the seller, and if I need to have money sent to Korea, I just have it sent and the bank keeps records of the funds coming in so I am sure to make my tax payments to the NTS for that income. Works great as I said. |
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dairyairy
Joined: 17 May 2012
Location: South Korea
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| Posted: Mon Apr 28, 2014 9:13 pm Post subject: |
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Since most posters on this board are teaching or working in Korea it is good news when the Korean won increases in value. If you are from other countries then the won may or may not be increasing in value against your home country's currency.
The most common measure is the US dollar. Why is the US dollar used as the common exchange rate by South Korea? The USA's economy is the largest in the world, and other nations also use the exchange rate versus the US dollar as a common benchmark to make it easier to measure their money against other currencies, too. Think of the US dollar as a common denominator for measuring the values of currencies.
The current exchange rate value is about 1035, depending on where you do your banking or exchange money. What does this mean? Many misunderstand what it means. It means that it takes 1035 Korean won to exchange for 1 US dollar. When that rate "goes down", say to 1020, that means it takes 1020 Korean won to exchange for 1 US dollar. That is good for you if you have Korean won and want US dollars. It is bad for you if you have American dollars and want Korean won. So, when the exchange rate "goes down" that means that the Korean won buys more American dollars when the two are exchanged. When it "goes up" to say 1050, that means it requires 1050 Korean won to exchange for 1 US dollar. It requires more won to buy dollars and that is bad for you if you are exchanging Korean won for American dollars.
What should you do? Well, if you are paid in Korean won and you send money home to the USA, then this is a good time for you to send more money back since you will be able to exchange your Korean won for more American dollars. If you are American but you don't wire money home and you spend all of your money in Korea, then you will not benefit. There must be an exchange of currency for you to benefit from the changing values. That means that when the won increases in value against the US dollar then those who wire money home to the USA will benefit.
Will the exchange rate go up or down? No one knows. It fluctuates based on many factors. The best thing to do is follow the long-tern trends. The Korean won has been increasing in value versus the US dollar for a few years so that is a long-term trend. But any economic or political crisis can affect the value of a nation's currency. |
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Okie from Muskogee
Joined: 30 Jan 2014
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| Posted: Tue Apr 29, 2014 12:07 am Post subject: |
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| Another north korean nuke test will probably decrease the value of the korean won. And korean war 2 will turn korean won into toilet paper. |
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nicwr2002
Joined: 17 Aug 2011
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| Posted: Tue Apr 29, 2014 11:58 pm Post subject: |
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| I wouldn't give my hopes up, but it has been steady around 960~970 won to a dollar this whole month. |
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nate1983
Joined: 30 Mar 2008
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| Posted: Wed Apr 30, 2014 5:34 pm Post subject: |
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| dairyairy wrote: |
The current exchange rate value is about 1035, depending on where you do your banking or exchange money. What does this mean? Many misunderstand what it means. It means that it takes 1035 Korean won to exchange for 1 US dollar. When that rate "goes down", say to 1020, that means it takes 1020 Korean won to exchange for 1 US dollar. That is good for you if you have Korean won and want US dollars. It is bad for you if you have American dollars and want Korean won. So, when the exchange rate "goes down" that means that the Korean won buys more American dollars when the two are exchanged. When it "goes up" to say 1050, that means it requires 1050 Korean won to exchange for 1 US dollar. It requires more won to buy dollars and that is bad for you if you are exchanging Korean won for American dollars.
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When quoting USD/KRW, the dollar is the "base" currency, and when the rate goes up it means the base currency becomes stronger. 1100 USD/KRW means a stronger dollar than 1050 USD/KRW. When you're holding won and planning to buy dollars at some point, you're effectively short USD/KRW (think of a currency pair as a commodity, such as an orange) and so you benefit when the rate goes down, as you would from a decrease in the price of an orange that you're planning to buy.
And before anyone says something, the '/' does not mean "divided by," it is just market convention for notating currency pairs. |
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Weigookin74
Joined: 26 Oct 2009
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| Posted: Wed Apr 30, 2014 5:40 pm Post subject: |
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I think Americans get the worst deal here. It's always the last to go back up but amonst the first to fall. Even during the so called 'boom years', I think there were only a couple of years when the US Dollar was below 1000 to the dollar. Maybe 2005 to 2007 when I looked at the histprical graph. Maybe early to mid 90's and before too. Either way, teaching in Korea is probably not the best deal for Americans, unless you're from rural Alabama or dying to get off the farm in Montana. If you go to Texas and certain states like these, there seems to be a reasonable ecnomic recovery. A younger person might be wise trying their luck there or coming here for a year to save ome cash and then relocate.
Texas has been raping a lot of other states. Either coast line seems ridiculous to live due to the high living costs and the higher unemployment rates.
http://news.yahoo.com/toyota-moving-us-california-texas-182247217.html
The Dakotas and Montana also have very low unemployment. For us Canadians, it's Alberta and Saskatchewan. Rents on the Canadian side are high and starting costs are a lot but once you're settled in, it's easier to make a living. Not sure about stateside, if the living costs like rents are lower or not.
Anyways, the won exchange rate is a better deal for us Canadians. But, even we got raped from 2007 to 2013. It's only now back to late 2007 levels. But early to mid 2007 levels and before were still higher and the won needs to rise a bit more. Hopefully, it will for us. But for you Americans, it doesn't look as good. Looking at the historical exchange rates, it only seems to ever go in your favor for short periods of time.
If I were a young pup, my plan would be a year here for some quick cash then homeward relocating to the boom areas. Long term here probably isn't worth it anymore. In my case, as I said elsewhere, I'm a couple of years away from the pension eligibility. So, I'll stick it out. Gotta make up fro not paying into pension back home. But 10 years is a long time to stay here. |
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No_hite_pls
Joined: 05 Mar 2007
Location: Don't hate me because I'm right
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| Posted: Thu May 01, 2014 8:45 am Post subject: |
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| Weigookin74 wrote: |
Texas has been raping a lot of other states. Either coast line seems ridiculous to live due to the high living costs and the higher unemployment rates.
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| Texas has more people earning the federal minimum wage or less than any other state and is tied with Mississippi for the highest percentage of minimum-wage workers. |
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| Since December 2007, the average weekly wage in Texas has stayed steady at $790, while the national average has risen from $750 to $790 and the average in New York (where, remember, the unemployment rate is similar) has risen from $870 to $900. Living expenses may be different in the two states, so the crucial point is of wage stagnation vs. a modest increase. |
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Texas has a somewhat lower median household income than does the United States as a whole. In 2003 The Economic Policy Institute reported that Texas had 91% of the median income of the US ($39,200 in Texas versus $43,300 for the US). And the hourly median wage in Texas for the same year was 88% of the national average ($12.01 versus $13.62).
These figures suggest that wage-earners in Texas lag behind the rest of the country and, simply put, earn less. In addition, since 1979 a worker earning the national median saw his/her income increase by 10% in 2003, which is not a large increase - but the same worker in Texas saw his or her wages increase by only 2.4%, while the cost of living increased a great deal more. |
http://texaspolitics.laits.utexas.edu/12_5_1.html
Yes, Texas is one of those red states that lead the United States in a race to the bottom for lowest pay. |
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World Traveler
Joined: 29 May 2009
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Weigookin74
Joined: 26 Oct 2009
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| Posted: Thu May 01, 2014 6:42 pm Post subject: |
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| No_hite_pls wrote: |
| Weigookin74 wrote: |
Texas has been raping a lot of other states. Either coast line seems ridiculous to live due to the high living costs and the higher unemployment rates.
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| Quote: |
| Texas has more people earning the federal minimum wage or less than any other state and is tied with Mississippi for the highest percentage of minimum-wage workers. |
| Quote: |
| Since December 2007, the average weekly wage in Texas has stayed steady at $790, while the national average has risen from $750 to $790 and the average in New York (where, remember, the unemployment rate is similar) has risen from $870 to $900. Living expenses may be different in the two states, so the crucial point is of wage stagnation vs. a modest increase. |
| Quote: |
Texas has a somewhat lower median household income than does the United States as a whole. In 2003 The Economic Policy Institute reported that Texas had 91% of the median income of the US ($39,200 in Texas versus $43,300 for the US). And the hourly median wage in Texas for the same year was 88% of the national average ($12.01 versus $13.62).
These figures suggest that wage-earners in Texas lag behind the rest of the country and, simply put, earn less. In addition, since 1979 a worker earning the national median saw his/her income increase by 10% in 2003, which is not a large increase - but the same worker in Texas saw his or her wages increase by only 2.4%, while the cost of living increased a great deal more. |
http://texaspolitics.laits.utexas.edu/12_5_1.html
Yes, Texas is one of those red states that lead the United States in a race to the bottom for lowest pay. |
http://www.bls.gov/web/laus/laumstrk.htm
Texas has 5.5% unemployment in March 2014 while California has 8.1% unemployment.
http://www.cbc.ca/news2/interactives/unemployment-stats/
The four eastern provinces of Canada have unemployent rates ranging from over 9% to over 11%. These provinces have higher taxes and more government interference.
The further west you go, particularly in Alberta and Saskatchewan, the rates fall dramitically to the 4% range with Regina being an impressive 3.7%. The further west you go the more free enterprise these provinces are.
Many years ago, I did some call centers for summer jobs and I worked for outsourced American companies. I dealt with people all over the US of A. What I consistently found was that New York and California had ridiculous prices while most of the south has ridiculously cheap prices. While there has been inflation over the last 10 years or so, I'm sure these extremes remain.
As for megook, it looks as though close to 20 states are nearing full employment while another 20 are nearing that situation. It looks like 10 are still pretty bad. (Though still less severe than the Maritimes which has always been bad because of too much government.)
In my mind, under 6 per cent unemployment rates gets decent. But closer to 4% gets better. That's when wages start rising and the poor and middle class start getting richer. With high unemployment, only the rich get richer.
As for Alberta, it's not just oil companies that relocated there, but also insurance companies and many other types of businesses. I think maybe Texas is experiencing the same phenominon now, bringing (over time) higher paying jobs with it. |
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Weigookin74
Joined: 26 Oct 2009
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| Posted: Thu May 01, 2014 6:49 pm Post subject: |
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Quote:
Since December 2007, the average weekly wage in Texas has stayed steady at $790, while the national average has risen from $750 to $790 and the average in New York (where, remember, the unemployment rate is similar) has risen from $870 to $900. Living expenses may be different in the two states, so the crucial point is of wage stagnation vs. a modest increase.
Oh yeah, ignored this. New York is 6.9% unemployment while Texas is 5.5%. New York has a much higher cost of living than Texas. I don't have enough info on the average wages to say one way or the other.
Either way, when unemployment rates fall below 5%, wages start rising due to supply and demand.
I remember visiting some US States in the late 90's that had unemployment rates near 2% and not a single minimum wage employer paid the minimum wage. They all paid more. I was shocked at the cavalier attitudes many had towards their employers as folks could just give the finger to their boss and walk across the street and get a better job with more pay. Compare that to the maritimes which has nearly 13% unemployment rates at the time. All you had to do, in those states, was threaten to quit and you'd get a pay raise. |
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