ⓒ JoongAng Ilbo / JoongAng Ilbo Japanese version2022.09.22 10:27
The US Federal Reserve Board (FRB) raised the policy interest rate by 0.75 percent, and the won depreciated to the 1,400 won level for the first time in 13 years and six months.
As of 9:13 am on the 22nd, the won exchange rate recorded 1,401.10 won to the dollar, which is 9.90 won lower than the previous day’s closing price.
It is the first time in 13 years and 6 months since the exchange rate recorded 1,400 won to 1 dollar since 1,422.0 won on March 31, 2009 during the financial crisis.
The dollar showed strength in the aftermath of last night’s Fed rate hike.
The Federal Open Market Committee (FOMC) held on the 20th and 21st raised the policy interest rate by 0.75% from the previous 2.25 to 2.5% to 3.0 to 3.25%. suggested continuing austerity.
The Fed is expected to raise interest rates by 0.75% at the November and December FOMC meetings.
The Fed expects rates to end the year at 4.4%, which would require an additional 1.25% hike, according to a dot chart that reflects FOMC members’ rate forecasts.
Fed Chairman Jerome Powell also stressed at a press conference after the FOMC’s regular meeting that he would not consider rate cuts until he was convinced that the inflation rate was falling toward (the Fed’s target) of 2%. .
Deputy Prime Minister and Minister of Strategy and Finance Choo Kyung-ho said at an emergency macroeconomic and financial meeting on the 22nd that the FRB’s decision to raise interest rates by 0.75% “is related to exchange rate trends.” Behind the exchange rate level, we will carefully manage the detailed factors that affect price variables.”
He continued, “We will implement multifaceted measures to alleviate the foreign exchange supply-demand imbalance, such as the flow of overseas investment by domestic residents such as pension funds, and the problem of foreign exchange funds supply and demand of importers and exporters, according to market conditions. We will take action,” he added.