The South Korean Won's Exchange Rate Against the US Dollar Plummets; What About the Rupiah?

The South Korean won was the Asian currency hardest hit by the strengthening US dollar throughout September 2022.

According to Asiabondsonlines data, the won weakened 5.25% against the US dollar to 1,412.82 per US dollar on September 22, 2022, compared to its end-of-last-month (month-to-date/mtd) position. This weakening of the won was the sharpest compared to other currencies in the region.

The next largest decline among Asian currencies was the Lao kip, which fell 4.02% to 16,073.03 per US dollar. This was followed by the Chinese yuan, down 2.65% to 7.08 per US dollar, and the Japanese yen, which also fell 2.41% to 142.39 per US dollar.

Next, the Thai baht weakened against the US dollar by 2.12% to 37.37 per US dollar. The Malaysian ringgit also fell 2.02% to 4.57 per US dollar, the Bruneian dollar corrected 1.52% to 1.42 per US dollar, and the Singapore dollar also depreciated against the US dollar by 1.52% to 1.42 per US dollar.

During this month (September 1-22), the Indonesian rupiah weakened by 1.2% to Rp15,023 per US dollar, and the Vietnamese dong weakened by 1.03% to 23,696 per US dollar.

For information, the US Federal Reserve (The Fed), which has raised its benchmark interest rates throughout the year, is the driving force behind the US dollar's strength against major world currencies. This is reflected in the US Dollar Index, which rose 2.44% to 111.35 at the close of trading on Thursday (September 22, 2022), compared to its end-of-last-month position.