The won-dollar exchange rate opened at 1,525 won on the 18th. It rose 11.6 won from the prior trading day.
The won-dollar exchange rate is expected to see increased volatility on the day. That is because the United States suggested a need to raise the benchmark interest rate within the year. When the United States raises rates, the dollar tends to strengthen, which can push the won-dollar exchange rate higher.
The Federal Reserve (Fed) left the benchmark interest rate unchanged at 3.5% to 3.75% by unanimous vote as expected, but signaled possible hikes. The dot plot, which shows policymakers' year-end rate projections, indicated that 9 of the 18 Commissioners expect rate increases. A 0.25-percentage-point hike was projected by 3, a 0.5-point hike by 5, and a 0.75-point hike by 1.
New Chair Kevin Warsh said there was no discussion of rate cuts at this meeting and noted that U.S. inflation has exceeded the target for more than five years. The dollar index (DXY), which reflects demand for the dollar, rose 0.9% to 100.39 points.