Ongoing Strong Dollar Pushes Won-Dollar Exchange Rate to Open at 1,543.0 Won

With the U.S. Federal Reserve's hawkish stance continuing, the dollar remains strong, and the won-dollar exchange rate began trading in the 1,540 won range.

On June 25, the won-dollar exchange rate opened at 1,543.0 won in the Seoul foreign exchange market, up 1.2 won from the previous trading day. As of 9:34 a.m., it had risen further to 1,548.8 won.

Expectations of a U.S. interest rate hike have fueled the continued strength of the dollar. Although the Fed kept its benchmark interest rate unchanged at the Federal Open Market Committee (FOMC) meeting on June 17 (local time), the market is increasingly anticipating a possible rate hike. As a result, the dollar index—which measures the value of the dollar against the currencies of six major countries—has been climbing from 99.54 since that day.

According to Investing.com, as of 9:34 a.m. on this day, the dollar index, which tracks the value of the U.S. dollar against six major currencies, stood at 101.66. This is the highest level in about one year and one month since May 13 last year (when it peaked at 101.795).

Park Hyungjoong, an economist at Woori Bank, said, "The possibility of a Fed rate hike, along with the mention of abolishing the dot plot, has created uncertainty in the market and led to a strong dollar phenomenon. If the U.S. actually raises rates, the upward pressure will become even greater," he projected.

He added, "Even if funds brought in through SK hynix's 45 trillion won ADR listing on Nasdaq are invested domestically, it would only amount to about two days' worth of our foreign exchange trading volume, so it is unlikely to significantly change the overall trend."

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