SEOUL, Sept 23 (NNN-YONHAP) – South Korea’s currency tumbled yesterday, after U.S. Federal Reserve’s rate hike led to a strong U.S. dollar.
The won/dollar exchange rate finished at 1,409.7 won per dollar, up 15.5 won from the previous close.
It marked the highest close in more than 13 years, since Mar, 2009, when the global financial crisis roiled financial markets across the world.
The Fed took a giant step again overnight, raising its benchmark interest rate by 0.75 percentage points, to a range of 3.00-3.25 percent.
Expectations ran high for the Fed to take a giant or big step again, later this year.
South Korea’s foreign exchange authorities vowed to slow the local currency’s fast slide versus the greenback, but it failed to block the won’s drop against the dollar.
Local stocks ended lower, amid the domestic currency’s weakness. The benchmark Kospi retreated 14.90 points, or 0.63 percent, to finish at 2,332.31.– NNN-YONHAP
