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Won/yen falls to 870 won range
Amid the US central bank, the Federal Reserve (Fed), freezing its benchmark interest rate, the won/dollar exchange rate fell to the 1,430 won range.
As of 9:30 AM on this day in the Seoul foreign exchange market, the won's exchange rate against the US dollar recorded 1,439.60 won, a decrease of 6.9 won.
This is the lowest level since February 27, before the outbreak of the Middle East war.
The exchange rate briefly dropped to 1,435.90 won and is currently moving around 1,440 won.
Overnight, the US Fed froze its benchmark interest rate at an annual 3.50-3.75%.
Although three members of the Federal Open Market Committee (FOMC) voiced opinions for an interest rate hike, Chairman Kevin Warsh's press conference was interpreted as dovish (preferring monetary easing).
Chairman Warsh assessed that financial conditions had tightened due to rising Treasury yields since the June FOMC and said, "This provided some relief that the Fed has the ability and capacity to achieve its goals."
While financial markets see a high probability of more than one rate hike this year, expectations for a September hike are being lowered.
The dollar index, which indicates the dollar's value against a basket of six major currencies, rose by 0.078 to 100.890, remaining above the 100 mark.
The yen/dollar exchange rate fell by 0.141 to 163.482 yen.
The won/yen cross rate dropped to the 870 won range per 100 yen during trading and is currently at 880.39 won, a decrease of 4.17 won.
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