SEOUL - The South Korean won experienced a notable decline against the U.S. dollar, reacting to changes in Japan's monetary policy, as the Bank of Japan ended its negative interest rate policy for the first time in nearly two decades.
According to Yonhap News Agency, the won's drop to 1,339.8 per U.S. dollar, a 6.1 won decrease, coincided with a policy adjustment by the Bank of Japan, which increased its short-term policy rate slightly above zero. Despite this change, the Japanese yen weakened, reflecting the bank's signals of maintaining a relatively loose monetary stance. Experts, including Daishin Securities' Kong Dong-rak, anticipate that the implications for South Korea's financial markets will be minimal and gradual, citing the historic nature of Japan's cautious rate adjustment after 17 years.