The USD/KRW symbol represents the currency pair trading the US dollar against the South Korean won - a pair that trades the most important currency in the forex market against one of the more popular Asian currencies. The US dollar is considered a reserve currency as the US economy is considered the world's most powerful economy, offering its official currency high liquidity in addition to giving it the status of a safe haven currency that investors turn to in times of geopolitical or economic uncertainty worldwide.The South Korean won used to be pegged to the US dollar at a rate of 15 KRW to 1 USD, which was later removed as the currency underwent multiple rounds of devaluation following the Korean war. It turned into a floating currency by the end of 1997 based on an agreement with the IMF.The KRW is a fully convertible currency and is one of the most traded currencies out of Asia. South Korea's economy is heavily dependent on trade, with the nation being a key exporter of technology and automobiles. As a result, the exchange rate of the USD/KRW experiences most volatility when markets trade with a risk-on sentiment. In such times, the risk appetite of investors is higher and they are more eager to move their capital from the safety of stable majors towards the more volatile emerging market currencies.