The won-dollar exchange rate opened at 1,451 won on the 19th. It rose 6.1 won from the previous trading day.
Overnight, it became known that Commissioners at the Central Bank of the United States, the Federal Reserve (Fed), largely agreed to keep the benchmark interest rate on hold for the time being. Even so, Commissioners were split on the timing of any additional rate cuts.
According to the minutes of the Jan. 27–28 meeting of the Federal Open Market Committee (FOMC), released on the 18th (local time), Fed Commissioners largely supported the decision to hold the benchmark interest rate. At the regular FOMC meeting at the time, the Fed kept the benchmark rate at 3.5–3.75%.
What the market focused on was that the minutes noted some Commissioners said the need to raise rates due to inflation should be considered. The minutes said, "The committee can support a bidirectional explanation for future rate decisions," adding that it "reflects that, if inflation remains above target, it may be appropriate to raise the target range for rates."
Min Kyung-won, a researcher at Woori Bank, said, "The dollar's strength is expected to continue as expectations for Fed rate cuts recede."