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Biz News Korea(Eng)
Korean won at 10-month low against U.S. dollar amid Fed’s hawkish stance
- Collected
- 2023.09.27
- Distributed
- 2023.09.28
- Source
- Go Direct
The Korean won closed at 1,348.5 won per U.S. dollar on Tuesday, down 12 won from the previous day and the lowest level in 10 months since 1,351.8 won on November 23 last year.
The U.S. dollar also gained against the Japanese yen, with the yen falling to 149 yen per greenback during the day to mark the lowest level in 11 months since October last year.
“Projections that the U.S. will continue its monetary tightening for a longer term are affecting both exchange rates and interest rates, as well as stock prices,” said one market insider.
The insider added that the weak yen due to Japan’s accommodative monetary policy stance and low-interest rates also affects the Korean won.
The won has been fluctuating around the 900 won per 100 yen mark amid the weak yen, and concerns have risen that this could weaken the competitiveness of Korean companies’ exports.
Some suggest that Korean authorities may have no choice but to tolerate a certain degree of the won’s weakening if the yen’s declining trend continues.
The strong U.S. dollar is also affecting the local stock market.
The Kospi closed at 2,462.97 on Tuesday, down 1.31 percent from the previous day while the Kosdaq finished at 827.83, down 1.35 percent.
The Japanese Nikkei 225 fell 1.11 percent and Taiwan’s TAIEX 1.07 percent. The Shanghai Composite Index decreased by 0.37 percent and the Hong Kong Hang Seng Index by 1.48 percent.
By Han Woo-ram and Chang Iou-chung
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]