The won-dollar exchange rate against the U.S. dollar finished weekly transactions at 1,437.4 won as of 3:30 p.m. on the 30th. It fell 9.3 won from the previous trading day's weekly transaction closing price of 1,446.7 won.
The won-dollar exchange rate fell to 1,435.9 won at 9:16 a.m. It then narrowed its decline and rose to 1,447.7 won at 10:41 a.m. Ahead of the weekly transaction close, it fell again and finished the week in the 1,430-won range. It was the lowest level since Feb. 26 (1,425.8 won).
Overnight, the U.S. Federal Reserve (Fed) held its benchmark interest rate at 3.5%–3.75% annually, which is seen as pulling the won-dollar exchange rate lower on the day. The dollar tends to weaken when the Fed does not raise its benchmark rate. With this FOMC, the Fed has kept the benchmark rate unchanged for the fifth consecutive time this year.
However, unlike the previous FOMC, where all 12 Commissioners unanimously held the benchmark rate, this time three Commissioners said the rate should be raised by 0.25 percentage point (p). Fed Chair Kevin Warsh said at a press conference after the rate announcement, "There is only one goal, and that is (inflation) 2%." He added, "Five years of high inflation have left some households, corporations, and market experts with a stubborn, mistaken impression that the Fed's implicit inflation target is higher than 2%."
Kim Yu-mi, a researcher at Kiwoom Securities, said, "Going forward, the U.S. dollar is more likely to fluctuate within a limited range than to take a clear direction." She added, "While U.S. inflation slowing and expectations for a rate hold are factors for dollar weakness, the Fed's hawkish communication and sustained high long-term rates can act as factors supporting the dollar."