Today (22nd), the won/dollar exchange rate broke through 1,400 won for the first time in 13 years and 6 months.



As of 9:13 a.m. in the Seoul foreign exchange market today, the exchange rate of the won against the dollar is 1,404.1 won per dollar, up 9.9 won from the closing price of the previous trading day.



It is the first time in 13 years and 6 months since the exchange rate recorded 1,400 won on March 31, 2009 (1,422.0 won based on the high price) at the time of the financial crisis.



The exchange rate opened at 1,398.0 won, up 3.8 won from the previous trading day, and immediately crossed the 1,400 won mark, expanding the upward trend.



The dollar strengthened overnight in the aftermath of the US Federal Open Market Committee (FOMC).



The Federal Reserve (Fed) raised the benchmark interest rate by 0.75 percentage points on the 21st, signaling that it would continue tightening intensively.



The Fed is expected to carry out a 'big step (0.5 percentage point increase)' and a 'giant step' at the remaining two FOMCs in the future (November and December).



According to a dotplot reflecting the rate forecasts of FOMC members, the Fed has projected a year-end rate of 4.4%, as that would require an additional 1.25 percentage point hike.



Fed Chairman Jerome Powell also said at a press conference after the FOMC meeting that he would not consider cutting rates until he was "very confident" that inflation was heading down to 2%.





Market stabilization measures by the foreign exchange authorities are a factor limiting the upper end of the exchange rate.



Deputy Prime Minister and Minister of Strategy and Finance Choo Kyung-ho, at the 'Emergency Macroeconomic and Financial Conference' held at the Bank Hall in Seoul today, said, "With respect to the won/dollar exchange rate, we will closely manage detailed factors that affect price variables behind the exchange rate level." "We will take step-by-step measures in accordance with market conditions in order to alleviate the imbalance in the supply and demand of foreign exchange, such as the flow of overseas investment by domestic residents, such as pension funds, and resolving difficulties in supply and demand of foreign currency funds by exporters and importers."



The Bank of Korea is also pursuing a currency swap agreement with the National Pension Service.



(Photo = Yonhap News)