Wed, 30 Nov 2022

S.Korean currency tumbles after Fed's rate hike

Xinhua
22 Sep 2022, 18:49 GMT+10

SEOUL, Sept. 22 (Xinhua) -- South Korea's currency tumbled on Thursday after U.S. Federal Reserve's rate hike led to a strong U.S. dollar.

The won/dollar exchange rate finished at 1,409.7 won per dollar, up 15.5 won from the previous close.

It marked the highest close in more than 13 years since March 2009 when the global financial crisis roiled financial markets across the world.

The Fed took a giant step again overnight, raising its benchmark interest rate by 0.75 percentage points to a range of 3.00-3.25 percent.

Expectations ran high for the Fed to take a giant or big step again later this year.

South Korea's foreign exchange authorities vowed to slow the local currency's fast slide versus the greenback, but it failed to block the won's drop against the dollar.

Local stocks ended lower amid the domestic currency's weakness. The benchmark Kospi retreated 14.90 points, or 0.63 percent, to finish at 2,332.31.

More South Korea News

Access More

Sign up for South Korea News

a daily newsletter full of things to discuss over drinks.and the great thing is that it's on the house!