South Korean won hits 15-year low following Fed rate cuts

ANKARA

The South Korean won hit a 15-year low on Thursday, trading at over 1,450 won per US dollar for the first time since the 2008 financial crisis.

The drop followed the US Federal Reserve's decision to cut its benchmark interest rate by 0.25 percentage points, bringing it to a range of 4.25–4.50 percent. This was the Fed's third consecutive rate cut, announced after a two-day meeting.

The Fed’s hawkish stance, which signaled only two rate cuts next year, intensified the pressure on the South Korean won, which is already struggling due to a dovish Bank of Korea and domestic political turmoil.