SEJONG– The South Korean currency closed higher against the U.S. dollar Tuesday after plunging to the lowest level in more than 13 years earlier in the session amid the Federal Reserve’s aggressive monetary tightening and the weak Chinese yuan.
After soaring to 1,444.2 won shortly after the opening bell — the lowest since 1,488 won posted during trading hours on March 16, 2009 — the local currency closed at 1,433.1 won, up 6.6 won from the previous session.
The won has nearly depreciated 17 percent against the greenback this year.
The latest 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) edged down 1.09 points, or 0.05 percent, to 2,235.07. Foreign investors have bought 78 billion won worth of local stocks in net value.
Source: Yonhap News Agency