THE South Korean currency today tumbled below the ₩1,390 mark against the greenback for the first time in more than 13 years as the higher-than-expected inflation data in the United States stoked worries over the Federal Reserve’s more aggressive monetary tightening.

The local currency had been trading at ₩1,394.7 won against the US dollar as of 9.26am, down ₩21.1 from the previous session’s close. The won dipped to as low as 1,395 at one point.

This marked the first time the won has fallen through the ₩1,390 mark since March 31, 2009, Yonhap news agency reported.

The tumble came hours after the US government announced the country’s consumer price index jumped 8.3% last month from a year earlier, higher than market expectations of an 8% rise.

The latest inflation data disappointed investors hoping to see eased inflation pressure in consideration of recent oil price declines and stoked worries the Federal Reserve will push for more aggressive monetary tighten.

South Korean shares also got off to a weak start, with the Korea Composite Stock Price Index tumbling more than 2% in the early morning trading.

In the wake of the unstable market situation, the government vowed to beef up policy efforts.

“Growing uncertainties over major nations’ potential interest rate hikes have caused greater financial market volatility both at home and abroad,” Yonhap also reported First Vice Finance Minister Bang Ki-sun said during an emergency economic task force meeting earlier in the day.

He called for the close monitoring of the financial and the foreign currency market with “extra caution” and reviewing all measures available to deal with the volatility. – Bernama, September 14, 2022.