# Despite Unprecedented US-Korea Interest Rate Gap, Exchange Rate Falls... "In Line with Market Expectations, No Shock" - The Asia Business Daily

> The US Federal Reserve raised its benchmark rate by 25 basis points on July 26, widening the Korea-US rate gap to a record 2 percentage points. The won-dollar rate opened lower and showed relatively stable behavior because the hike was widely anticipated.

- Date: 2023-07-27 · published 2023-07-27T12:00:00.000Z
- Category: macro · region South Korea · magnitude low
- Page: https://feedsoft.ai/events/35279-despite-unprecedented-us-korea-interest-rate-gap-exchange-rate-falls-in-line
- Commodities: [Korean Won (KRW per USD)](https://feedsoft.ai/c/USDKRW.md)

## Why it matters

A record rate gap raises risk of capital outflows and won weakness, which lifts the cost of dollar-priced feed imports for Korea; the market reaction so far has been muted.

## Read by commodity

- USDKRW: neutral

## Sources

- asiae.co.kr: https://www.asiae.co.kr/en/article/2023072709471466909

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.