Won-Dollar Exchange Rate Soars 13.6 Won to Surpass 1,382 on Fed Rate Hike (Update)

As of 3:30 p.m., exchange rate returns to the 1,380 won level after 17 sessions
Dollar index surpasses 100 amid U.S. monetary tightening

The won-dollar exchange rate has surged by more than 13 won, trading in the 1,380 won range. This is due to the U.S. Federal Reserve (Fed) raising its benchmark interest rate by 0.25 percentage points and signaling the possibility of further hikes.

As of 3:30 p.m. on September 17, 2026, at the Seoul foreign exchange market, the won-dollar rate was trading at 1,382.2 won, up 13.6 won from the previous session's weekly closing price. The exchange rate, which had been trading in the 1,360 won range the previous night, jumped significantly overnight and was quoted at 1,378.3 won at 9:00 a.m.

Afterwards, it continued to climb, reaching an intraday high of 1,384.5 won at 10:56 a.m. This marks the first time in 13 trading days since August 31 (1,380.5 won) that the intraday won-dollar rate exceeded 1,380 won. Based on the 3:30 p.m. closing price, it is the first time in 15 trading days since August 27 (1,380.9 won).

Yonhap News Agency

The main reasons cited for the sharp rise in the won-dollar exchange rate today are the Fed's rate hike announcement and the possibility of further increases within this year. On September 16 (local time), the Fed raised the benchmark interest rate by 0.25 percentage points to 3.75-4.00% at the Federal Open Market Committee (FOMC) meeting held in Washington, D.C. This is the first tightening measure in three years and two months since July 2023.

All 12 voting FOMC members (Fed governors and regional Federal Reserve Bank presidents) unanimously approved the rate hike. In addition, among the 19 FOMC members, the median year-end interest rate forecast—excluding Fed Chair Kevin Warsh—reached 4.1%, up by 0.3 percentage points from June, raising expectations for further rate hikes within this year.

Chair Warsh emphasized in a press conference that "inflation is too high and has persisted for too long," stressing the rationale for the rate hike and the Fed's commitment to price stability. The dollar index, which measures the value of the dollar against the currencies of six major countries, surpassed the 100 mark, reaching 100.161. The yen-dollar rate fell by 0.63 yen to 155.63 yen. The won-yen cross-rate rose by 9.07 won, reaching 888.24 won per 100 yen.

On this day, foreign investors recorded net sales of nearly KRW 2.28 trillion in the KOSPI market, further pressuring the won-dollar exchange rate. This marks the sixth consecutive session of net selling.

Kwon Minsu, Deputy Governor of the Bank of Korea, stated, "We expect the U.S. Federal Reserve to maintain a tight monetary policy going forward," adding, "As major central banks such as Japan and the UK are also expected to make monetary policy decisions this week, we will remain particularly vigilant and closely monitor domestic financial and foreign exchange market conditions."

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