Won-Dollar Rate Soars on Fed Interest Rate Expectations

The South Korean won-dollar exchange rate has climbed to 1,419.4 won as of August 13th. This marks a 3.7 won (0.26%) increase from the previous session's weekly close.

The rate had opened at 1,417.5 won but fell to 1,410.8 won around 9:30 am before rising again to end the week slightly lower than its peak of 1,420.7 won.

This trend is attributed to expectations that the Federal Reserve (Fed) may raise its benchmark interest rate in response to a 3.4% rise in U.S. consumer prices in July, which remains above the Fed's 2% target.