Won drops to 2023 lows on renewed inflation concerns

Home > Business > Finance

Won drops to 2023 lows on renewed inflation concerns

Published: 27 Feb. 2023, 14:22 Updated: 27 Feb. 2023, 14:41

A screen in Hana Bank's trading room in central Seoul shows the local currency trading at 1,315.4 agains the dollar on Monday. [NEWS1]

The won hit 2023 lows on Monday as key inflation indicators published Friday were higher than expectations.

It traded above 1,320 to the dollar during the session.

Renewed inflation fears reignited concerns about the U.S. Federal Reserve continuing to raise rates and drove investment funds toward the dollar and other safe-haven assets.

The won was trading at 1,315.0 against the dollar when the foreign exchange market opened on Monday and broke the 1,320 mark during the session, the highest since December 16. It was trading at 1,319.2 as of 2 p.m.

The U.S. Commerce Department announced Friday that personal consumption expenditures (PCE) for January rose 0.6 percent, beating expectations of 0.5 percent. Core PCE excluding the volatile energy and food also rose 0.6 percent, beating the 0.4 percent expectation.

January PCE was higher than the 0.2 percent in December and 4.7 percent higher on year.

BY SOHN DONG-JOO [[email protected]]