South Korean Won Weakens Against U.S. Dollar on Rate Hike Expectations
Quick Look
- The South Korean won weakened against the U.S. dollar on Tuesday, falling to its lowest level since June 8.
- Renewed expectations of a U.S.
- Federal Reserve rate hike this year, coupled with a stronger U.S. dollar outlook, are driving the decline.
AI-generated summary
Why It Matters
The South Korean won weakened against the U.S. dollar on Tuesday amid renewed expectations that the U.S. Federal Reserve would raise its rates this year.
SEOUL, June 23 (Yonhap) -- The South Korean won weakened against the U.S. dollar Tuesday amid renewed expectations that the U.S. Federal Reserve would raise its rates this year.
The won opened at 1,539.4 won per dollar, down 2.4 won from the previous session.
At one point in the morning trading, the won fell to as low as 1,540.1 won per dollar, marking the weakest level since June 8.
Last week, the U.S. Fed held its benchmark interest rate steady in its first rate decision since new Chair Kevin Warsh took office, but at least half of its policymakers anticipated a higher rate later this year.
Although global oil prices have declined on the back of progress in peace talks between the U.S. and Iran, the won has been slipping due to expectations of a stronger U.S. dollar.
Earlier in the day, South Korean stocks opened lower over measured optimism about peace negotiations between the United States and Iran.
What to Watch
AI outlook — possibilities, not facts
U.S. Federal Reserve may raise interest rates later this year.
Likely · Within months
Open Questions
- Will the Fed actually raise rates this year?
- How will oil prices impact currency markets further?
