The South Korean won weakened to around 1,380 per dollar, again approaching the 1,400 threshold, as Federal Reserve tightening, oil prices above $100 a barrel and reduced dollar supply in South Korea’s foreign-exchange market strengthened the U.S. currency. The dollar-won rate closed at 1,383.3 won on the 18th, up 47.2 won from 1,336.1 won on the 9th after seven consecutive sessions of gains, and reached 1,387.1 won intraday before exporters sold dollars. The Federal Reserve raised its benchmark rate by 0.25 percentage points on the 16th to 3.75–4.0% and lifted its year-end policy-rate projection from 3.8% to 4.1%. Fed governor Kevin Warsh said the current rate was insufficient to restrain U.S. consumption and investment, while some analysts expect three more increases by next summer. A dollar index measuring the currency against six major currencies moved above 100 to a seven-week high. Higher oil prices are increasing South Korean importers’ dollar needs and could add to U.S. inflation pressure, potentially encouraging further Fed tightening. Dollar inflows also fell after flows linked to SK Hynix’s American Depositary Receipt (ADR, a U.S.-traded certificate representing foreign shares) listing ended, the National Pension Service suspended strategic currency hedging, and companies reduced conversions of dollar holdings ahead of interim corporate tax payments. Future volatility will depend on oil prices, developments in Middle East supply disruptions and comments from Fed presidents scheduled for the 22nd and 24th. Dollar sales by semiconductor exporters, sustained export growth and large current account surpluses could temper the won’s decline, according to Im Hwan-yeol, a researcher at Woori Bank.