Thoughts as I Watch the Exchange Rate Rise Again
Just a few months ago, it was in the low 1,300s, but now it's climbed back up again. For someone who frequently orders from overseas, it just feels like the cost of living is rising.
If import prices stay high, they'll eventually feed into domestic prices with a lag, and I'm not sure when we can expect rate cuts again. From the sidelines, it's just frustrating.
3 answers
Agreed... I really sigh when I see the amount in Korean won at the overseas checkout lol
I bought some last year when it was in the early 1,300s as part of my FX investing, and that was a stroke of genius. Looking at it now that it's over 1,350, I also regret not buying more back then. But honestly, an individual predicting exchange rates is a gamble, so if you frequently buy from overseas, setting your payment currency to USD and having it deducted from a dollar account is also an option. The savings on exchange fees are pretty significant.
Maybe we should dial back expectations for a rate cut. Given how slowly US inflation is coming down, a rate cut within the year? I'm not so sure... And isn't it a bit outdated to say that domestic prices will inevitably follow just because the exchange rate rose? These days, the time lag varies depending on import share and contract structure. If you have evidence, let me know.