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S. Korea's currency tumbles amid global tightening, weak Chinese yuan

Economy 09:56 October 25, 2022

SEJONG, Oct. 25 (Yonhap) -- The South Korean currency hit a new yearly low against the U.S. dollar during the intraday trading on Tuesday, amid lingering concerns over aggressive monetary tightening in the United States and the weak Chinese yuan.

The won traded at 1,444 won at the opening bell, down 4.3 won from the previous close, and reached 1,444.2 won later in the session. It marked the lowest level since 1,488 won posted during trading hours on March 16, 2009.

The latest figure marks around 17 percent of depreciation by the won against the greenback this year.

The local currency later rebounded slightly, trading at 1,437.5 won against the U.S. dollar as of 9:37 a.m., up 2.2 won from Monday.

The slide came amid lingering concerns that the U.S. Federal Reserve could have more room for additional rate hikes, although some expect it may also choose to slow down at the end of this year.

Experts say the won also lost ground in sync with the slide in the Chinese yuan, after investors expressed concerns over the future of Asia's No.1 market after President Xi Jinping began his third term.

The benchmark Korea Composite Stock Price Index (KOSPI) gained 13.59 points, or 0.61 percent, to 2,249.75 as of 9:37 a.m. Foreign investors have bought 10.2 billion won worth of local stocks in net value.


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