The strengthening of the U.S. dollar against the Korean currency — nearing the 1,400 won mark — is having varying effects on different people. While tourists and expatriates in Korea welcome the bolstered greenback, Koreans studying in the U.S. or working abroad and receiving their paychecks in Korean won are encountering difficult times.
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The won-dollar exchange rate exceeded the 1,300 won mark during Friday s trading session amid growing fears over some U.S. Federal Reserve officials hawkish remarks that a 50-basis-point increase would be needed in next month s FOMC meeting. With the longer-than-expected global monetary tightening factoring in the trading session, the won-dollar exchange rate was at 1,291.9 won at the start of Friday s session.
The Korean won to U.S. dollar exchange rate soared above the 1,400 level for the first time in more than 13 years on Thursday in the wake of the U.S. Federal Reserve s overnight hike of its key interest rate by 75 basis points for the third straight time in a desperate bid to fight inflation. With the U.S. Fed s hawkish attempt to curb inflation, the won-dollar exchange rate soared, ending at 1,409.7 won at the Seoul foreign currency exchange on Thursday. It marked a 15.5 won increase from Wednesday. The rate started off at 1,398 won, a 3.8 won increase from the previous close, and quickly surpassed the 1,400 won mark in the early trading hours of Thursday. It reached 1,413 at one point during the trading session.