November 17, 2021

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


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,…

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