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KRW/USD Exchange Rate Climbs to 1,345.9 Amid Fed Rate Hike Concerns and Oil Price Surge
Finance · Major Banks · yonhap_finance · 2026-09-11
The South Korean Won weakened against the US Dollar, closing at 1,345.9 as rising oil prices and expectations of a Fed rate hike fueled market volatility.
What Happened
Market Drivers: The South Korean Won depreciated against the US Dollar as investors reacted to higher-than-expected US PPI data, reinforcing expectations for a Federal Reserve rate hike. Geopolitical tensions in the Middle East further pressured the currency by driving global oil prices above $100 per barrel.
Energy and Geopolitics: Both WTI and Brent crude oil reached their highest levels since May, reflecting concerns over prolonged regional conflicts. Reports regarding potential long-term military tensions have added a layer of uncertainty to global energy markets.
Currency Support: Despite the upward pressure, consistent dollar selling by major semiconductor exporters has capped the exchange rate's gains. Strong demand for AI-related technology continues to provide a steady supply of foreign currency into the local market.
Monetary Policy Context: The Bank of Japan’s commitment to further tightening and ongoing scrutiny of the Yen's weakness have influenced regional currency dynamics. While the dollar index saw a slight decline, the Won remained sensitive to broader macroeconomic shifts.