Exchange Rate Calculator

The exchange rate between the South Korean Won (KRW) and the Euro (EUR) is a critical indicator for businesses, investors, and policymakers engaged in trade and financial activities between South Korea and the Eurozone. Analyzing the recent trends in the KRW/EUR exchange rate provides valuable insights into the economic dynamics influencing these two regions.

Recent Trends in KRW/EUR Exchange Rate

Over the past few months, the KRW/EUR exchange rate has exhibited notable fluctuations. According to data from the European Central Bank (ECB), the exchange rate has experienced a general trend of depreciation of the KRW against the EUR. For instance, on December 4, 2024, the exchange rate was 1 EUR to 1,487.28 KRW. By March 20, 2025, it had depreciated to 1 EUR to 1,591.96 KRW, indicating a weakening of the KRW relative to the EUR over this period.

Factors Influencing the Exchange Rate Movements

Several factors have contributed to the observed movements in the KRW/EUR exchange rate:

1. Monetary Policy Divergences: The Bank of Korea and the European Central Bank have pursued differing monetary policies in response to their respective economic conditions. Variations in interest rates and monetary policy stances can influence capital flows and, consequently, exchange rates.

2. Trade Balances: South Korea's trade balance with the Eurozone affects demand for the KRW and EUR. A trade surplus in South Korea typically strengthens the KRW, while a deficit can lead to depreciation.

3. Global Economic Conditions: External factors such as global economic growth, commodity prices, and geopolitical events can impact investor sentiment and currency valuations.

Implications for Stakeholders

The depreciation of the KRW against the EUR has several implications:

• Exporters and Importers: South Korean exporters to the Eurozone may find their goods more competitively priced, potentially boosting exports. Conversely, importers of Eurozone goods may face higher costs.

• Investors: Currency fluctuations can affect the returns on investments denominated in foreign currencies. Investors need to consider exchange rate risks in their portfolios.

• Policymakers: Understanding exchange rate dynamics is essential for formulating effective monetary and fiscal policies to maintain economic stability.

Conclusion

The KRW/EUR exchange rate has shown a trend of KRW depreciation against the EUR over the past few months, influenced by factors such as monetary policy differences, trade balances, and global economic conditions. Stakeholders should closely monitor these developments to make informed decisions in their respective domains.