Exchange Rate Calculator

The exchange rate between the Australian Dollar (AUD) and the South Korean Won (KRW) has exhibited notable fluctuations over the past few months. This report provides an analysis of the recent trends, key influencing factors, and potential future outlooks for the AUD/KRW currency pair.

Recent Exchange Rate Trends

As of May 3, 2025, the AUD/KRW exchange rate stands at approximately 924.25 KRW per 1 AUD. This marks a significant appreciation from earlier in the year. For instance, on February 28, 2025, the exchange rate was 907.02 KRW per AUD, indicating an increase of about 1.9% over the two-month period.

Over the past six months, the exchange rate has experienced a range between a low of 889.42 KRW on September 16, 2024, and a high of 922.80 KRW on November 7, 2024. The average exchange rate during this period was approximately 909.75 KRW per AUD, reflecting a general upward trend in the value of the Australian Dollar relative to the South Korean Won.

Factors Influencing the Exchange Rate

Several factors have contributed to the observed fluctuations in the AUD/KRW exchange rate:

1. Economic Indicators: Australia's economic performance, including GDP growth and employment rates, has been robust, bolstering investor confidence in the AUD. Conversely, South Korea has faced economic challenges, such as slowing export growth, which have exerted downward pressure on the KRW.

2. Interest Rate Differentials: The Reserve Bank of Australia (RBA) has maintained a relatively higher interest rate compared to the Bank of Korea. This interest rate differential has attracted yield-seeking investors to the AUD, increasing its demand and value against the KRW.

3. Commodity Prices: Australia's economy is heavily reliant on commodity exports. The recent surge in global commodity prices, particularly for iron ore and coal, has strengthened the AUD. South Korea, as a net importer of these commodities, has experienced a trade balance impact, affecting the KRW.

4. Geopolitical Events: Tensions in the Asia-Pacific region and global trade dynamics have influenced investor sentiment. Australia's stable political environment has made the AUD a more attractive option compared to the KRW during periods of uncertainty.

Historical Context

Looking back over the past year, the AUD/KRW exchange rate has shown significant variability. In 2024, the exchange rate reached a high of 935.09 KRW per AUD on July 15 and a low of 863.20 KRW per AUD on February 14. This volatility underscores the sensitivity of the currency pair to both domestic economic conditions and external global factors.

Future Outlook

Predicting future exchange rate movements involves considerable uncertainty. However, several potential scenarios could influence the AUD/KRW pair:

• Continued Commodity Demand: If global demand for commodities remains strong, the AUD may continue to appreciate against the KRW.

• Monetary Policy Adjustments: Any changes in interest rates by the RBA or the Bank of Korea could alter the interest rate differential, impacting the exchange rate.

• Economic Recovery in South Korea: Should South Korea implement effective economic policies leading to recovery and growth, the KRW could strengthen, potentially reversing the current trend.

Conclusion

The AUD/KRW exchange rate has experienced an upward trend over the past few months, influenced by economic indicators, interest rate differentials, commodity prices, and geopolitical events. While the future direction of the exchange rate remains uncertain, monitoring these key factors will provide insights into potential movements in the currency pair.