Won-Dollar Exchange Rate Jumps 13.7 Won on Prospects of U.S. Rate Hike

Double-Digit Surge
Closes at 1,527.1 Won

On June 18, the won-dollar exchange rate surged by more than 13 won, affected by signals from the U.S. Federal Reserve (Fed) regarding a potential interest rate hike.

On the 18th, the exchange rate, KOSPI, and KOSDAQ indices are displayed on the status board in the dealing room of Hana Bank in Jung-gu, Seoul. Photo by Yonhap News

On this day, in the Seoul foreign exchange market, the won-dollar exchange rate closed weekly trading at 1,527.1 won, up 13.7 won from the previous trading day.

The won-dollar rate opened at 1,525.0 won, an increase of 11.6 won from the previous trading day. After narrowing its gains to the 1,519 won range around 1 p.m., it climbed back near 1,530 won just before the close, marking its highest level in five trading sessions.

This movement followed the first Federal Open Market Committee (FOMC) meeting under Fed Chair Kevin Warsh, where a hawkish hold was delivered. While the Fed kept its benchmark interest rate unchanged at 3.50–3.75% per annum, its dot plot indicated that the future monetary policy path now points toward further rate hikes.

As a result, the market interpreted this decision as more hawkish than expected, driving the U.S. dollar stronger. The Dollar Index (DXY), which measures the value of the dollar against six major currencies, remained firm at 100.215, staying above the 100 mark.

Foreign investors made net purchases totaling 1.277 trillion won in the domestic KOSPI market on this day; however, this was not enough to alter the direction of the exchange rate.

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