Dollar Weakens on FOMC Disappointment... Won-Dollar Exchange Rate Falls to 1160 Won Range

[Image source=Yonhap News]

[Asia Economy Reporter Kim Eun-byeol] On the 18th, the KRW-USD exchange rate is showing a downward trend.

At 10:26 a.m. in the Seoul foreign exchange market, the KRW-USD exchange rate is trading at 1,166.73 won, down 7.65 won from the previous day's closing price.

The exchange rate started at 1,169.5 won and is widening its decline. It fell to as low as 1,166.1 won before partially recovering some of the losses. After lowering its closing level to the 1,170 won range for the first time in about seven months on the 15th, the exchange rate has been declining for three consecutive days.

The decline in the exchange rate is attributed to the weakening of the US dollar. On the 16th (local time), after the US Federal Reserve (Fed) announced the Federal Open Market Committee (FOMC) results, concerns about economic uncertainty increased in the market. Although the Fed stated it would maintain zero interest rates for three years, the market views the lack of additional stimulus measures as insufficient.

The Dollar Index, which indicates the value of the US dollar against major currencies, stands at 92.88.

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