South Korea’s won tumbled along with the Thai baht after a hotter-than-expected US inflation print boosted the dollar.
(Bloomberg) — South Korea’s won tumbled along with the Thai baht after a hotter-than-expected US inflation print boosted the dollar.
The Korean currency slid as much as 1.6% to 1,395.55 per dollar, the biggest drop since June. The baht plunged as much as 1.2% to 36.686 to the greenback while the Malaysian ringgit weakened 0.3%.
Emerging Asian currencies are coming under pressure as the latest US inflation figures reinforce expectations for more outsized Federal Reserve rate hikes. Growing fears of a global slowdown are also taking a toll as China’s slowing economy and Europe’s energy crisis cloud the outlook.
“The Korean won tends to be more liquid and reliant on external drivers than most emerging Asian currencies, making it more vulnerable to dollar moves,” said Kim Yumi, a market strategist at Kiwoom Securities in Seoul.
(Updates throughout)
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