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Won hits 15-year low, breaches 1,450 mark for first time since financial crisis

Published: 19 Dec. 2024, 09:42 Updated: 19 Dec. 2024, 09:43

SHIN HA-NEE
[email protected]

U.S. Federal Reserve Chairman Jerome Powell speaks during a news conference in Washington on Dec. 18 following the Federal Open Market Committee meeting. [EPA/YONHAP]

The Korean won fell to a 15-year low on Thursday, breaching the 1,450 won-per-dollar mark at market opening, following a quarter-percentage-point rate cut by the United States overnight.

The exchange rate opened at 1,453 won per dollar, up 17.5 won from the previous session, marking its highest level since March 16, 2009, when it reached 1,488.5 won.

The Federal Open Market Committee lowered its benchmark interest rate by 25 basis points to a range of 4.25 to 4.50 percent on Wednesday after a two-day meeting. This marked the committee’s third consecutive rate cut.

The won-dollar exchange rate surged following the Federal Reserve's hawkish shift, as the U.S. central bank said it now expects only two rate cuts next year, down from the previously anticipated four.

BY SHIN HA-NEE [[email protected]]