The exchange rate of the Korean Won is mainly determined by the supply and demand of the U.S. dollar in the foreign exchange market. U.S. monetary policy has a significant impact on the exchange rate of the Korean Won, more so than Korea's own policies. Changes in the U.S. dollar index, which reflects the value of the dollar internationally, are closely linked to fluctuations in the Korean Won's exchange rate. To predict changes in the Korean Won's value, one should focus on factors affecting the U.S. dollar index, particularly U.S. monetary policy.