Korean Won Depreciates Ahead of Fed Rate Decision
The South Korean won depreciated against the US dollar on Monday ahead of the Federal Reserve's key rate decision. The won was trading at 1,347.3 per dollar at 3:30 pm, down 1.4 from its previous close. Market expectations are high that the Fed will increase its key rate this week.
The recent escalation of the US-Iran military conflict in the Middle East has driven up oil prices, with Brent crude futures hovering above $100 per barrel. This has raised concerns about inflation and prompted traders to bet on a rate hike from the Federal Reserve.
Foreign investors also sold a net 3.2 trillion won ($2.3 billion) worth of local stocks during Monday's trading session, while the Korea Composite Stock Price Index plummeted by 3.26% to close at 6,684.37.