The U.S. Federal Reserve's decision to stand pat on its key interest rate is in line with market expectations and will have a limited impact on South Korea's financial sector, the government said Thursday.

Officials attending a macroeconomic and financial policy meeting in Seoul chaired by Vice Finance Minister Joo Hyung-hwan said that while the Federal Open Market Committee adjusted growth estimates, it signaled the economy remained on track for an interest rate hike this year.

"With the U.S. Fed to raise rates, and developments in Greece becoming uncertain, there is always a risk of increased global financial market volatility," Joo said. "Even if problems do occur, any impact on South Korea will be mixed."

If the U.S. rate goes up, it can lead to an outflow of capital that is not good for the economy, Joo said.

On the plus side, such a move is a clear sign that U.S. policymakers are confident about growth in the world's No. 1 economy, he said, adding this can translate into more South Korean exports, which is beneficial to the economy as a whole.

Outbound shipments in the first five months of 2015 fell 5.7 percent from the same period a year earlier.

The Fed's move sent the greenback falling against the South Korean won on the local currency market as investors bet on a weaker dollar down the road.

The Korean won closed at 1,107.1 per dollar, up 10.8 won from the previous session's close, on speculation that the Fed would be gradual in raising borrowing costs.

"The FOMC's statement was interpreted as dovish, which is putting downward pressure on the dollar," said Jun Seung-ji, an analyst at Samsung Futures Co. "But given lingering Greek woes and intervention concerns, the dollar's slide may be limited."

On the debt crisis in Greece, Joo said uncertainties surrounding the eurozone country can cause investors to seek more stable currencies, which could lead to a strengthening of the Japanese yen.

A stronger yen can give locally made goods better price competitiveness in overseas markets.

While the government does not expect serious repercussions, it will upgrade financial and foreign exchange monitoring, and update its existing emergency manual to cope with any unforeseen developments that may arise, Joo said. (Yonhap)