November 17, 2021
Markets

S. Korea vigilant over market volatility after Fed’s hawkish stance

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South Korea will closely monitor the financial market as market volatility could increase following the Federal Reserve’s signal of an earlier-than-expected rate hike, a senior government official said Thursday.

After freezing its key rate at near zero at a policy meeting, the Fed signaled an earlier-than-expected rate increase in 2023 as US inflation is rising amid an economic recovery. The US central bank also hinted at starting to discuss ways to taper bond-buying programs.

Bearing the Fed’s surprise results, South Korea’s key stock index was trading 20.06 points, or 0.61 percent, lower at 3,258.62 as of 9:15 a.m. The Korean currency was trading at 1,130.20 won per US dollar, sharply down 13 won from the previous session.

First Vice Finance Minister Lee Eog-weon said the country has strong economic fundamentals and policy room to cope with potential market volatility,…

Read full article here: www.koreaherald.com