On the 9th, the won-dollar exchange rate rose more than 2 won from the previous day, closing in on 1,470 won.
According to the Seoul foreign exchange market, the won-dollar rate opened at 1,469.2 won, up 2.3 won from the prior session's weekly transaction closing price. It was down 0.6 won from the 2 a.m. closing price (1,469.8 won).
Overnight, the New York Federal Reserve released expected inflation at 3.2%, putting upward pressure on the exchange rate. Expected inflation reflects consumers' outlook for prices one year ahead. If expected inflation becomes entrenched, the U.S. Federal Reserve (Fed) could issue a hawkish message.
It also moved in step with a weaker yen. The yen is weakening on news of a magnitude 7.6 earthquake off Aomori Prefecture. If the economic damage from the quake worsens, the Bank of Japan (BOJ) could delay a rate hike.
However, gains in the exchange rate were limited ahead of the Federal Open Market Committee (FOMC) decision scheduled for the 10th. The market expects the Fed to cut the benchmark rate, currently 3.75% to 4.00% annually, by another 0.25 percentage point at this meeting.
Min Kyung-won, a Woori Bank researcher, said, "Today's exchange rate is expected to remain rangebound, centered in the upper 1,460-won level," and added, "With U.S. consumers' inflation expectations not easing, the market is wary of the possibility of hawkish remarks at this week's FOMC."