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16-07-2022, 11:32 AM
Bank of Korea Governor Rhee Chang-yong on Wednesday tried to calm fears of an exodus of foreign capital if the U.S. Federal Reserve hikes the key interest rate again at the end of this month.
"There were three times in the past when the U.S. interest rate surpassed Korea's rate, but there were no major problems and there were some instances when foreign capital actually lowed into Korea," Rhee said. "Right now, a strong dollar has caused not only the won but all major currencies such as the euro, yen and yuan to depreciate."
A further weakening of the won would make it more expensive for Korea to import products and accelerate inflation. But Rhee said there will be no immediate capital outflow even if the Fed hikes the base rate by a full percentage point.
https://english.chosun.com/site/data/htm...00780.html
"There were three times in the past when the U.S. interest rate surpassed Korea's rate, but there were no major problems and there were some instances when foreign capital actually lowed into Korea," Rhee said. "Right now, a strong dollar has caused not only the won but all major currencies such as the euro, yen and yuan to depreciate."
A further weakening of the won would make it more expensive for Korea to import products and accelerate inflation. But Rhee said there will be no immediate capital outflow even if the Fed hikes the base rate by a full percentage point.
https://english.chosun.com/site/data/htm...00780.html
