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The won/dollar exchange rate rose to the mid-1,480 won range as expectations for future interest rate cuts in the US diminished.
As of 9:06 AM on the 30th in the Seoul foreign exchange market, the won-dollar exchange rate was 1,485.7 won, up 6.7 won from the previous day's weekly closing price (as of 3:30 PM).
The exchange rate started at 1,486.5 won, up 7.5 won, and has been fluctuating around that level.
Although the US Federal Reserve (Fed) froze the benchmark interest rate at 3.50-3.75% per annum at the Federal Open Market Committee (FOMC), its monetary policy decision-making body, the dollar is strengthening as three committee members expressed minority opinions blocking expectations for future interest rate cuts.
These committee members voted in favor of freezing the interest rate but opposed including a 'dovish stance' in the statement, which would signal that a rate cut is more likely than a rate hike in the future.
As the Fed's decision was interpreted as a 'hawkish freeze,' the dollar index, which shows the value of the dollar against six major currencies, rose to the early 99s this morning. It is currently slightly down at 98.821.
Ongoing instability in the Middle East is also a factor contributing to the rise in the exchange rate.
US President Donald Trump announced his policy to maintain a maritime blockade against Iran until a nuclear agreement with Iran is reached. Iran has also warned of a strong response, escalating tensions.
The yen/dollar exchange rate also rose, exceeding 160 yen. It climbed to 160.460 yen overnight and is currently slightly down at 160.090 yen.
The won/yen cross rate rose by 1.68 won to 927.7 won per 100 yen compared to the previous day's closing price as of 3:30 PM.
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