S. Korean currency records largest rise in 13 yearsBreaking

November 11, 2022

The South Korean national Currency won had the largest single-session growth on Friday since 2008 amid expectations that the US Federal Reserve could ease up on its fight against inflation, potentially lowering interest rates, South Korean media reported. The Friday market session closed with 1,318.40 won against the US dollar, which is 59.1 won higher than after the previous session, according to the Yonhap news agency.

It is the largest single-session increase of the South Korean currency since October 2008, when there was a growth of around 177 won. The spike could reportedly be caused by a recent slowdown in inflation in the US, where annual price increase dropped to 7. 7% in November from 9.1% in June. Such a tendency may prompt the Federal Reserve to stop increasing key interest rate, which it has done in recent months to curb rampant inflation.

In late September, the won fell below 1,400 against the US Dollar for the first time in more than 13 years after the US Federal Reserve raised its keyinterest rate by 75 basis points to a record 3.25%, maximum since 2008. On November 3, the rate was increased by another 75 basis points. In late October, the South Korean currency plunged to 1,444 won against the dollar, which was the lowest in 14 years.

Credit : Independent News Pakistan-INP