▲ Financial data is displayed on a screen in the dealing room of Hana Bank in Seoul on June 23, 2026. (Yonhap)

Korean won-volatility

Korean won slumps against U.S. dollar on expectations of Fed rate hike

SEOUL, June 23 (Yonhap) -- The South Korean won weakened against the U.S. dollar Tuesday amid renewed expectations that the U.S. Federal Reserve would raise its rates this year.

The won opened at 1,539.4 won per dollar, down 2.4 won from the previous session.

At one point in the morning trading, the won fell to as low as 1,540.1 won per dollar, marking the weakest level since June 8.

Last week, the U.S. Fed held its benchmark interest rate steady in its first rate decision since new Chair Kevin Warsh took office, but at least half of its policymakers anticipated a higher rate later this year.

Although global oil prices have declined on the back of progress in peace talks between the U.S. and Iran, the won has been slipping due to expectations of a stronger U.S. dollar.

Earlier in the day, South Korean stocks opened lower over measured optimism about peace negotiations between the United States and Iran.

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