Fed Rate Hike Weighs Won Ahead of BOJ Decision

The Federal Reserve's decision to raise interest rates by 25 basis points has weakened the Korean won, causing it to drop 13.6 won against the US dollar on Thursday.

The three-year Korean government bond yield rose 1.0 basis point to 4.063 percent, while the 10-year yield fell 4.1 basis points to 4.506 percent.

Markets are now focused on the Bank of Japan's decision, which is expected to raise its policy rate from 1 percent to 1.25 percent on Friday, marking a 31-year high for the benchmark.