Won-Dollar Exchange Rate Rises Over 10 Won Early in Trading... Late 1420 Won Range

[Image source=Yonhap News]

[Asia Economy Reporter Seo So-jeong] The won-dollar exchange rate rose by more than 10 won in early trading following hawkish remarks by Jerome Powell, Chairman of the U.S. Federal Reserve (Fed).

According to the Seoul foreign exchange market on the 3rd, the won-dollar exchange rate opened at 1,425.3 won, up 7.9 won from the previous day's closing price, and as of 9:20 a.m., it was moving in the high 1,420 won range.

The U.S. Fed announced on the 2nd (local time) immediately after the Federal Open Market Committee (FOMC) regular meeting that it would raise the benchmark interest rate by 0.75 percentage points.

Fed Chairman Powell said at a subsequent press conference, "The terminal rate will be higher than previously expected," indicating that it will exceed the Fed's earlier projection of a 4.6% benchmark interest rate next year. Regarding the possibility of pausing rate hikes, he dismissed it as "very premature."

Following Chairman Powell's hawkish remarks, the dollar index, which measures the value of the dollar against the currencies of six major countries, rose to the 112 level.

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