US Interest Rate Hike Likely... Won-Dollar Exchange Rate Rises

[Asia Economy Reporter Jang Sehee] On the morning of the 21st, the exchange rate of the Korean won against the US dollar is on the rise.

As of 9:07 AM in the Seoul foreign exchange market, the won-dollar exchange rate stood at 1,134.2 won per dollar, up 1.9 won from the previous trading day's closing price.

Concerns are growing that the US Federal Reserve (Fed) may raise the benchmark interest rate earlier than expected, which seems to be affecting the foreign exchange market as well.

James Bullard, President of the Federal Reserve Bank of St. Louis, appeared on CNBC on the 18th (local time) and stated that due to higher-than-expected inflation, the interest rate hikes could begin as early as the end of next year. This has been interpreted as the Fed's monetary policy stance leaning toward tightening.

Meanwhile, at the same time, the won-yen exchange rate was 1,029.17 won per 100 yen, up 0.41 won from the previous trading day's 3:30 PM reference price of 1,028.76 won.

This content was produced with the assistance of AI translation services.