The South Korean won falls against the U.S. dollar on Tuesday, driven by renewed market expectations that the U.S. Federal Reserve could raise interest rates later this year. The won opens around 1,539.4 won per dollar and trades lower during the session, reaching about 1,540.1 won per dollar at its weakest point, the lowest level since June 8. By late afternoon, it is quoted near 1,539.1 won per dollar, down roughly 2 won from the previous session. The movement follows the Fed’s decision last week to hold its benchmark rate steady, its first rate review since new Chair Kevin Warsh took office, while at least half of policymakers reportedly anticipate a higher rate later this year. The won also weakens as traders expect a stronger U.S. dollar. While global oil prices decline amid progress in U.S.-Iran peace talks, Korean assets remain under pressure, with Korean stocks opening lower and the benchmark Korea Composite Stock Price Index falling nearly 10 percent to close at 8,203.84. Foreign investors sell a net 4.1 trillion won of local shares on Tuesday.
Korean won weakens against U.S. dollar on renewed Fed rate-hike expectations
The South Korean won falls against the U.S. dollar on Tuesday, driven by renewed market expectations that the U.S. Federal Reserve could raise interest rates later this year. The won opens around 1,53...
- The won weakens against the U.S. dollar on Tuesday amid renewed expectations of a Fed rate hike later this year.
- The won opens around 1,539.4 won per dollar and trades to a weakest level near 1,540.1 won per dollar, the lowest since June 8.
- The Fed held its benchmark interest rate steady last week, with at least half of policymakers expecting higher rates later this year.
- Korean stocks fall sharply, with the KOSPI dropping nearly 10 percent to close at 8,203.84.
- Foreign investors sell a net 4.1 trillion won of local stocks on Tuesday.
The South Korean won weakened against the U.S. dollar Tuesday amid renewed expectations that the U.S. Federal Reserve would raise its rates this year. The won traded at 1,539.1 won per dollar, down 2.1 won from the previous session, as of 3:30 p.m., partly hit by a sell-off by foreign investors in local stocks. The won opened at 1,539.4 won per dollar earlier in the day but tumbled to as low as 1,542.1 won at one point, marking the weakest level since June 8. Last week, the U.S. Fed held its benchmark interest rate steady in its first rate decision since new Chair Kevin Warsh took office, but at least half of its policymakers anticipated a higher rate later this year. Although global oil prices have declined on the back of progress in peace talks between the U.S. and Iran, the won has been slipping due to expectations of a stronger U.S. dollar. In line with the overnight selling on Wall Street, the benchmark Korea Composite Stock Price Index plunged nearly 10 percent to close at 8,203.84. Foreign investors sold a net 4.1 trillion won ($2.6 billion) worth of local stocks on Tuesday.
9 hours agoThe Korean won weakened against the U.S. dollar Tuesday amid renewed expectations that the U.S. Federal Reserve would raise its rates this year. The won opened at 1,539.4 won per dollar, down 2.4 won from the previous session. At one point in the morning trading, the won fell to as low as 1,540.1 won per dollar, marking the weakest level since June 8. Last week, the U.S. Fed held its benchmark interest rate steady in its first rate decision since new Chair Kevin Warsh took office, but at least half of its policymakers anticipated a higher rate later this year. Although global oil prices have declined on the back of progress in peace talks between the U.S. and Iran, the won has been slipping due to expectations of a stronger U.S. dollar. Earlier in the day, Korean stocks opened lower over measured optimism about peace negotiations between the United States and Iran.
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