 |
| Movements of Seoul's stocks and currency are shown on a screen at a Hana Bank dealing room in Seoul, June 27. Yonhap |
The Korean currency rose by the most against the U.S. dollar in about a month Monday as expectations that the Federal Reserve may slow its aggressive monetary tightening eased concerns about a global economic recession.
The local currency closed at 1,286.50 won against the greenback, up 11.70 won from the previous session.
It marked the highest daily increase since May 30, when the won rose 17.60 won per the dollar.
Financial market volatility has recently heightened over fears of the U.S. central bank's aggressive rate hikes and a resulting global recession. The Korean currency slid below 1,300 per dollar Thursday for the first time in nearly 13 years.
But it rose for the second straight session Monday, as appetite for riskier assets revived on eased fears about a recession, analysts said.
U.S. consumer sentiment dipped to a record low in June, which prompted investors to reduce their bets of a 75-basis point rate hike by the Fed at its July meeting.
St. Louis Fed President James Bullard, known as having a hawkish policy stance, said Friday that concerns about a U.S. recession are overblown.
Earlier this month, the Fed raised its key rate by 0.75 percentage points ― the sharpest hike since 1994 ― to curb surging inflation, and signaled it could raise the rate by the similar magnitude next month.
Seoul's stocks also traded higher Monday on bargain hunting. The benchmark Kospi rose 35.32 points, or 1.49 percent, to end at 2,401.92. Foreign investors snapped up a net 267.4 billion won ($207.9 million) worth of local stocks.
Korea's foreign exchange authorities vowed to stabilize the market when needed, if market volatility increases.
Finance Minister Choo Kyung-ho said Sunday on a TV program that he does not think the won's fall below 1,300 per dollar is a sign of an economic crisis. (Yonhap)
![[INTERVIEW] Im Si-wan finds own narrative for villain role in 'Emergency Declaration'](https://img.koreatimes.co.kr/upload/thumbnailV2/bfa7ef2cf863407995b8b34d77351afb.jpg/dims/resize/178/optimize)
