Dollar strengthens on hawkish Fed... KRW-USD exchange rate shows slight increase

The exchange rate is showing an upward trend in early trading on the 20th due to dollar strength.

The KRW-USD exchange rate opened at 1,441.6 won in the Seoul foreign exchange market, up 3.1 won from the previous session.

The previous night's minutes from the Federal Open Market Committee (FOMC) meeting last month were released.

Federal Reserve members expressed caution about interest rate cuts, citing signs of inflation resurgence this year and uncertainties in Trump administration's economic policies.

As the Fed's stance on maintaining interest rates becomes more evident, dollar strength has become more pronounced.

The Dollar Index, which measures the value of the dollar against six major currencies, is currently at 107.153. It has been rebounding since dropping to the mid-106 range on the 17th.

Markets forecast that the KRW-USD exchange rate will rise slightly today, tracking dollar strength.

KB Bank analyzed that "the dollar strengthened as the minutes reaffirmed the Fed's stance on maintaining interest rates," adding that "this is expected to limit the decline in the KRW-USD exchange rate." The expected range is 1,437-1,445 won.

Woori Bank also projected that "the dollar value is rising due to Trump's tariff threats and delayed Fed rate cuts," forecasting that "the exchange rate will rise due to strong dollar pressure and regional low-price buying." The expected range is 1,437-1,446 won.

Meanwhile, Hana Bank noted that "if foreign investors continue net buying amid favorable domestic stock market conditions, exchange rate upward pressure could ease."

Reporter Kim Yewon yen88@wowtv.co.kr