Macro & Policy/Currency & Rates
Korea and the Fed Are Both Hiking Rates — So Why Did the Won Fall?
On September 16-17, 2026, the Federal Reserve raised its policy rate a quarter point to 3.75-4.00% — its first hike since 2023 — in a unanimous, more-hawkish-than-expected vote, with its dot plot signaling further tightening through 2027. The Bank of Korea had already hiked twice this year, to 3.0% by late August. The intuitive read is that two central banks hiking together should be a wash for ..