Fed Pause Weighs on US Dollar as Won-Dollar Rate Hits New Low

The US dollar's value weakened against the Korean won due to the Federal Reserve's decision to keep its benchmark interest rate unchanged.

According to Chosunbiz, the won-dollar exchange rate finished weekly transactions at 1,437.4 won on July 30th, a decline of 9.3 won from the previous day's closing price of 1,446.7 won.

This marks the lowest level since February 26th when the exchange rate was 1,425.8 won.

The Fed's decision to maintain its benchmark rate at 3.5-3.75% annually is seen as contributing to the dollar's weakness, as a lower interest rate tends to weaken the currency.

Kim Yu-mi, a researcher at Kiwoom Securities, noted that the US dollar may fluctuate within a limited range going forward due to various factors such as slowing inflation and expectations for a rate hold.