South Korean won slides to two-week low as Fed rate-hike expectations rise
The won dropped to a two-week trough against the dollar, pressured by growing bets that the Federal Reserve will raise rates this week.
The South Korean currency fell to its lowest level in two weeks, reaching 1,372.9 won per dollar in early trading and settling at 1,368.6 later in the day. The decline reflects mounting market expectations that the Federal Reserve will implement a rate increase this week, the first such move in three years. Oil prices remained above the US$100-per-barrel mark as conflict escalated between the United States and Iran in the Middle East.
During the session, foreign investors off-loaded a net 1.6 trillion won (about US$1.17 billion) of local stocks. Despite the currency weakness, the benchmark Korea Composite Stock Price Index gained 1.37 %, closing at 6,717.97.
Why it matters
The won's slide signals market sensitivity to U.S. monetary policy and regional geopolitical tensions.
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