Won-Dollar Rate Edges Up, Yen-Dollar Rate Sees Surge Potential

The Korean won-dollar exchange rate closed the week at 1,383.3 won on September 18th, up 1.1 won (0.07%) from the previous day's close. This marks a slight increase following the Federal Reserve's benchmark rate hike on the previous day.

Japan's Central Bank raised its rates by 0.25 percentage points to 1.25%, the highest level in 31 years since 1995, with 7 out of 9 Commissioners voting in favor. Market participants interpreted this as a cautious approach, which could lead to a surge in the yen-dollar rate to 157 yen.

Min Kyung-won, a researcher at Woori Bank, believes that the exchange rate may edge down before the Chuseok holiday due to steady won-selling demand by semiconductor corporations. He notes that recent buying activity has led to a rise in the exchange rate, but this may not continue.