S.Korean currency soars on weaker USD-Xinhua

S.Korean currency soars on weaker USD

Source: Xinhua| 2022-11-11 15:55:15|Editor: huaxia

SEOUL, Nov. 11 (Xinhua) -- South Korea's currency soared versus the U.S. dollar on Friday as the lower-than-expected inflation in the United States led to a weaker greenback.

The won/dollar exchange rate finished at 1,318.4 won per dollar, down 59.1 won from the previous close. It was the biggest daily volatility in about 14 years since November 2008.

During the whole week, the exchange rate tumbled 100.8 won amid the lower dollar index, which gauges the dollar value versus six major peers.

The U.S. consumer price index (CPI) gained 7.7 percent in October from a year earlier, lower than market expectations of 7.9 percent.

The lower-than-forecast inflation raised expectations for the U.S. Federal Reserve to slow the speed of interest rate hikes.

The Fed took another giant step last week by raising its key rate by 0.75 percentage points to a range of 3.75-4.00 percent.

The Bank of Korea (BOK) has hiked its benchmark interest rate in eight steps since August last year from 0.5 percent to 3.0 percent.

South Korean stocks were boosted by the strong local currency. The benchmark Kospi jumped 80.93 points, or 3.37 percent, to end at 2,483.16, marking the fastest daily increase since February 2021.

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