'Hawkish Powell'... Won-Dollar Exchange Rate Rises to 1300 Won Level After 2 Weeks

Jerome Powell, Chairman of the U.S. Federal Reserve (Fed) [Image source=Yonhap News]

The won-dollar exchange rate rose to the 1,300 won level during the session for the first time in about two weeks.

On the 23rd, in the Seoul foreign exchange market, the won-dollar exchange rate opened at 1,300.5 won, up 5.6 won from the previous trading day, and has been moving around the 1,300 won level.

This is the first time since the 8th that the exchange rate rose to the 1,300 won level during the session, about two weeks ago.

Jerome Powell, Chairman of the U.S. Federal Reserve (Fed), made hawkish (favoring monetary tightening) remarks the day before (local time), which is interpreted as causing the dollar to strengthen and pushing up the exchange rate.

At the Senate 'Semiannual Monetary Policy Report' hearing the day before, Chairman Powell emphasized that most members of the Federal Open Market Committee (FOMC) believe that additional interest rate hikes are necessary this year.

He explained that to bring U.S. inflation down to the Fed's target level of 2%, the members "feel it is appropriate to raise interest rates about twice this year."

On the same day, the won-yen effective exchange rate was recorded at 908.4 won per 100 yen, down 4.5 won from the previous day's 3:30 p.m. reference price of 912.9 won.