Won hits over 13-year low following disappointing US inflation data
An electric signboard at the headquarters of Hana Bank in Seoul shows the Korean won changing hands with the U.S. dollar at 1,392.30, Sept. 14. Yonhap
The Korean currency on Wednesday tumbled below the 1,390-won mark against the greenback for the first time in over 13 years as the higher-than-expected inflation data in the United States stoked worries over the Federal Reserve's more aggressive monetary tightening.
The local currency had been trading at 1,394.7 won against the U.S. dollar as of 9:26 a.m., down 21.1 won from the previous session's close. The won dipped to as low as 1,395 at one point.
This marked the first time the won has fallen through the 1,390-won mark since March 31, 2009.
The tumble came hours after the U.S. government announced the country's consumer price index jumped 8.3 percent in August from a year earlier, higher than market expectations of an 8 percent rise.
The latest inflation data disappointed investors hoping to see eased inflation pressure in consideration of recent oil price declines and stoked worries the Federal Reserve will push for more aggressive monetary tightening down the road.
Market experts predict the Fed will likely deliver at least a 75-basis-point rate hike next week following increases of the same magnitude in June and July to tame runaway inflation. (Yonhap)