FX.co ★ South Korean Won Declines on Stronger Dollar

The South Korean won weakened to approximately 1,420 per dollar on Thursday, reversing the previous session's gains as the US dollar gained strength following statements from the Federal Reserve. On Wednesday, Fed Chair Jerome Powell noted that the Federal Reserve is not in a rush to decrease interest rates, highlighting that tariffs could potentially fuel inflation and impede economic growth. In South Korea, the central bank maintained its base interest rate at 2.75% during its April 2025 meeting, which was anticipated by market analysts. This rate remains at its lowest since September 2022 as the Bank of Korea strives to stabilize inflation, bolster sluggish economic growth, and mitigate risks posed by global economic uncertainties. Additionally, the bank navigates the domestic political environment in the lead-up to South Korea's presidential election scheduled for June 3, 2025.