South Korea’s “won” (KRW) fell through the 1,400 mark against the U.S. dollar for the first time in 13 years and a half on Thursday, September 22, 2022 local time after the Federal Reserve’s rate hike by another three-quarters of a percentage point the previous night.
In the early morning hours of the day, the South Korean currency hit 1,409.85 against the greenback as the key currency rallied to bring the “U.S. Dollar Currency Index” as high as 111.784 the same day.
It is the first time since March 31, 2009, when the won recorded 1,422, for the currency to go below the 1,400 mark which had served a “psychologically important” point among traders and the public.
Amid concerns about possible financial crisis, the South Korean government said it would take necessary actions to stem any herd behavior in the foreign exchange market.
With increased volatility, however, not a few analysts and experts say there is a possibility that the won could weaken further to reach 1,450 per dollar, as the U.S. Fed is expected to keep its hawkish stances and restrictive monetary policy for the time being.
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