Exchange Rate Calculator

The exchange rate between the Brazilian Real (BRL) and the South Korean Won (KRW) has experienced notable fluctuations over the past few months. This report provides an analysis of the BRL/KRW exchange rate trends, key influencing factors, and future projections.

Recent Exchange Rate Trends

2024 Overview:

• Highest Rate: On January 17, 2024, the BRL reached its peak against the KRW at 272.10 KRW per BRL.

• Lowest Rate: The lowest point was recorded on December 25, 2024, with the exchange rate at 216.39 KRW per BRL.

• Average Rate: Throughout 2024, the average exchange rate was approximately 253.59 KRW per BRL.

Overall, the BRL depreciated by approximately 10.38% against the KRW during 2024.

Early 2025 Developments:

• January 2025: The exchange rate began at 234.12 KRW per BRL on January 1 and climbed to 249.53 KRW per BRL by January 31.

• February 2025: The BRL continued to strengthen, reaching a high of 253.38 KRW per BRL on February 18.

• March 2025: The rate experienced volatility, with a low of 233.09 KRW per BRL on March 4 and a rebound to 251.56 KRW per BRL by March 5.

As of March 21, 2025, the exchange rate stood at 255.64 KRW per BRL.

Factors Influencing the Exchange Rate

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

1. Economic Indicators:

• Brazil: Economic performance, including GDP growth, inflation rates, and interest rate decisions by the Central Bank of Brazil, directly impact the BRL's strength.

• South Korea: Similarly, South Korea's economic health, reflected in its export performance, technological advancements, and monetary policies, influences the KRW's value.

1. Geopolitical Events:

• Political stability, trade agreements, and international relations can cause shifts in investor confidence, affecting currency valuations.

1. Global Market Sentiment:

• Global economic trends, such as commodity prices (notably for Brazil's exports) and demand for South Korean technology products, play a role in currency demand and supply dynamics.

Future Projections

Forecasts for the BRL/KRW exchange rate suggest a gradual appreciation of the BRL against the KRW:

• Mid-2025: Projections indicate an average rate of approximately 242.33 KRW per BRL in May 2025, with slight increases in the following months.

• End of 2025: The exchange rate is expected to reach around 260.39 KRW per BRL by December 2025, representing a 3.91% increase from current levels.

• 2026 Outlook: Further appreciation is anticipated, with the rate potentially reaching 245.74 KRW per BRL by the end of 2026.

Conclusion

The BRL/KRW exchange rate has exhibited significant volatility over the past year, influenced by a complex interplay of economic indicators, geopolitical events, and global market sentiments. While recent trends and forecasts suggest a potential appreciation of the BRL against the KRW, it is essential for investors and businesses to stay informed about ongoing economic developments in both countries and globally.