The South Korean currency has nosedived against the dollar once again to a level not seen since the global financial crisis in 2009 after the U.S. central bank chief signaled a prolonged hawkish monetary stance to tame inflation.
The won during mid-trading day on Monday weakened to one-thousand-350-point-eight against the greenback before slightly paring losses to end at one-thousand-350-point-four, or down 19-point-one won from the previous session.
It marks the weakest closing level for the Korean currency since hitting one-thousand-356-point-eight on April 28, 2009.
The latest tumble came after U.S. Fed Chairman Jerome Powell indicated at Jackson Hole on Friday that more large key rate hikes will be made in the months to come, warning of “some pain” to the U.S. economy.
First Vice Finance minister Bang Ki-sun on Monday, meanwhile, pledged strengthened policy efforts to stabilize the local currency market.
Source: KBS World Radio