While the dollar has recently turned strong again and the currency value of emerging economies has been falling, the won has fallen more than 6% against the dollar, the second-largest drop among major emerging economies, the report showed.
As of 9:10 a.m. GMT+8 on the 27th, Bloomberg reported that the won plunged 6.32 percent against dollar in February, the second-largest drop after the Russian ruble (-7.03%), which was sanctioned by the West due to the Ukrainian war.
In addition, Thai baht, which had been strong due to expectations of inflow of Chinese tourists since the lifting of “Zero COVID,” fell 5.58% this year, and South Africa’s Land (-5.06%), which was popular as a risky asset investment destination, also fell to the level at the end of last year.
The only currencies strong against the dollar this month were the Mexican peso (+2.44%) and the Peruvian sol (+0.64%).
Amid the strong dollar and weak currencies of emerging economies, the currency index of emerging economies compiled by Morgan Stanley Capital International (MSCI) has almost returned this year’s gains and returned to the level at the end of last year.
The index rose from 1,660.55 at the end of last year to 1,717.60 (+3.4%) during the day on the 2nd, but has fallen to 1,667.15 based on the closing price on the 24th.
The dollar, which peaked in September last year, continued to fall until last month as the Federal Reserve, the U.S. central bank, slowed down its rate hike.
However, with the recent rebound in U.S. price indicators, there seems to be growing concerns that the strengthening of the Fed’s monetary tightening could revive the dollar.
The number of non-agricultural jobs in the U.S. in January, announced this month, increased by 517,000, nearly double the previous month, and both the Consumer Price Index (CPI) and the Producer Price Index (PPI) growth rate in January exceeded market expectations.
In addition, the U.S. January Personal Consumption Expenditure (PCE) Price Index, released on the 24th (local time), rose 5.4% year-on-year, rebounding for the first time in seven months from the previous month (5.3%).