Exchange Rate Calculator

Over the past few months, the exchange rate between the Swedish Krona (SEK) and the South Korean Won (KRW) has exhibited notable fluctuations, reflecting underlying economic dynamics in both Sweden and South Korea. This report provides an analysis of the SEK/KRW exchange rate trends, key influencing factors, and potential implications for stakeholders.

Recent Exchange Rate Trends

In 2025, the SEK/KRW exchange rate has experienced significant volatility. The year began with the rate at approximately 133.18 KRW per SEK on January 1, 2025. By March 11, 2025, the exchange rate peaked at 145.02 KRW per SEK, marking the highest point for the year. This represents an increase of about 8.9% over this period. The average exchange rate for 2025 up to March 17 was 134.84 KRW per SEK. (exchange-rates.org)

Comparatively, in 2024, the exchange rate ranged from a low of 125.19 KRW per SEK on May 6 to a high of 133.96 KRW per SEK on December 27, with an average rate of 128.95 KRW per SEK. (exchange-rates.org) This indicates a strengthening of the Swedish Krona against the South Korean Won in the early months of 2025.

Factors Influencing the Exchange Rate

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

1. Interest Rate Differentials: The monetary policies of Sweden's Riksbank and South Korea's Bank of Korea significantly impact the exchange rate. If the Riksbank raises interest rates more aggressively than the Bank of Korea, it could attract investors seeking higher returns, thereby strengthening the SEK against the KRW.

2. Economic Performance: Sweden's economic indicators, such as GDP growth and inflation rates, influence investor confidence in the SEK. Similarly, South Korea's economic performance affects the KRW. For instance, robust economic growth in Sweden relative to South Korea can lead to a stronger SEK.

3. Global Trade Dynamics: As export-oriented economies, both Sweden and South Korea are sensitive to global trade conditions. Changes in demand for exports, trade agreements, and geopolitical tensions can impact their currencies. For example, increased demand for Swedish exports can bolster the SEK.

4. Commodity Prices: Fluctuations in commodity prices, particularly those relevant to Sweden's and South Korea's export profiles, can influence the exchange rate. For instance, a rise in the price of commodities that Sweden exports can strengthen the SEK.

5. Market Sentiment and Speculation: Investor perceptions and speculative activities can lead to short-term volatility in the exchange rate. News related to economic policies, political stability, or global events can sway market sentiment, affecting the SEK/KRW rate.

Implications for Stakeholders

The fluctuations in the SEK/KRW exchange rate have several implications:

• Exporters and Importers: Swedish exporters to South Korea may find their goods more expensive for Korean buyers when the SEK strengthens, potentially reducing competitiveness. Conversely, South Korean exporters to Sweden may benefit from a stronger SEK, making their products more affordable to Swedish consumers.

• Investors: Currency fluctuations can impact the returns on investments denominated in SEK or KRW. Investors need to consider exchange rate risks when allocating assets between these currencies.

• Tourists: For travelers, a stronger SEK means higher expenses when visiting South Korea, while a weaker SEK would make South Korea a more affordable destination for Swedish tourists.

Conclusion

The SEK/KRW exchange rate has shown considerable movement in the early months of 2025, influenced by a complex interplay of interest rate differentials, economic performance, global trade dynamics, commodity prices, and market sentiment. Stakeholders should closely monitor these factors to make informed decisions in the context of currency fluctuations.