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(LEAD) S. Korean currency falls to over 13-year low in intraday trading

Economy 09:49 July 15, 2022

(ATTN: UPDATES with more details throughout; ADDS photo)

SEOUL, July 15 (Yonhap) -- The South Korean currency on Friday sank below the 1,320-won level against the U.S. dollar for the first time in more than 13 years amid concerns about global monetary tightening and an economic recession.

The Korean currency was trading at 1,322.30 won against the dollar as of 9:41 a.m., down 10.20 won from the previous session. The won hit as low as 1,322.70 per dollar in the morning trading.

It marked the first time that the won has fallen through the 1,320-won level per the greenback since April 30, 2009, in intraday trading.

The won's weakness came as demand for the dollar gained ground on expectations that the Federal Reserve will likely accelerate its monetary tightening to tame elevated inflation.

U.S. consumer prices, a key gauge of inflation, soared 9.1 percent on-year in June, the highest in 41 years and accelerating from an 8.6 percent jump in May. The U.S. producer price index also jumped 11.3 percent on-year in June.

Faster-than-expected inflation prompted some market players to raise their bets on the Fed's 1 percentage point rate hike at the July policy meeting.

The Fed's aggressive rate hikes have spawned concerns that the move could slip the U.S. economy into a recession.

Seoul's stocks traded lower on global recession woes Friday. The benchmark stock index fell 17.61 points, or 0.76 percent, to trade at 2,304.71 points as of 9:41 a.m.

This photo, taken July 15, 2022, shows information on South Korea's stocks and currency movements on an electronic signboard at a Hana Bank dealing room in Seoul. (Yonhap)


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