Exchange Rate Calculator

The exchange rate between the Canadian Dollar (CAD) and the South Korean Won (KRW) has exhibited notable fluctuations over the past few months. This report provides an analysis of the recent trends, underlying factors influencing these movements, and potential future outlooks.

Recent Exchange Rate Trends

January 2025:
- High: 1 CAD = 1,026.86 KRW on January 1
- Low: 1 CAD = 995.54 KRW on January 30
- Average: 1 CAD = 1,009.63 KRW

The month began with a strong CAD, reaching its peak on January 1. However, a downward trend ensued, culminating in the month's lowest rate on January 30.

February 2025:
- High: 1 CAD = 1,017.85 KRW on February 7
- Low: 1 CAD = 999.84 KRW on February 25
- Average: 1 CAD = 1,011.30 KRW

February saw moderate fluctuations, with the CAD strengthening in the first week and then experiencing a gradual decline towards the month's end.

March 2025:
- High: 1 CAD = 1,012.68 KRW on March 6
- Low: 1 CAD = 1,006.23 KRW on March 11
- Average: 1 CAD = 1,008.52 KRW

March exhibited relative stability, with minor fluctuations around the 1,008 KRW mark.

Factors Influencing Exchange Rate Movements

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

1. Economic Indicators:

   • Canada: Economic performance, including GDP growth, employment rates, and trade balances, directly impacts the CAD's strength.
   • South Korea: Similarly, South Korea's economic health influences the KRW.

2. Monetary Policies:

   • Decisions by the Bank of Canada and the Bank of Korea regarding interest rates and monetary policies affect investor confidence and currency valuations.

3. Global Market Sentiment:

   • Geopolitical events, trade negotiations, and global economic trends can lead to shifts in investor behavior, impacting both currencies.

4. Commodity Prices:

   • Canada's economy is significantly influenced by commodity exports, especially oil. Fluctuations in commodity prices can affect the CAD's value.

Future Outlook

Forecasts suggest a gradual appreciation of the CAD against the KRW in the coming years:

• Next Year: Estimated average of 1 CAD = 1,037.19 KRW
• 5-Year Projection: Estimated average of 1 CAD = 1,098.50 KRW
• 10-Year Projection: Estimated average of 1 CAD = 1,164.92 KRW

These projections are based on current economic trends and are subject to change due to unforeseen global events and policy shifts.

Conclusion

The CAD/KRW exchange rate has experienced moderate fluctuations over the past few months, influenced by a combination of economic indicators, monetary policies, global market sentiments, and commodity prices. While forecasts indicate a potential appreciation of the CAD against the KRW, stakeholders should remain vigilant to global economic developments and policy changes that could impact this trajectory.