이 누리집은 대한민국 공식 전자정부 누리집입니다.
Biz News Korea(Eng)
- Collected
- 2019.09.19
- Distributed
- 2019.09.20
- Source
- Go Direct
The second cut in U.S. interest rates further bolstered the rationale for a synchronized action from the Korean central bank when it meets next month but turned investors in Seoul wary about the uncertainty in the world’s largest economy.
Bank of Korea Governor Lee Ju-yeol said Thursday the U.S. Federal Reserve’s lowering of the fed fund target range after the July cut “eases the burden on other central banks,” sensing the Fed has room for “additional cut” if necessary.
Korean stocks that opened up near 1 percent higher from overnight news turned anxious of mixed signs from the U.S economy.
The Kospi finished Thursday 0.41 percent higher at 2,079.15 and the Kosdaq up 0.07 percent at 645.56. The Korean won ended 0.2 percent lower at 1,193.6 per U.S. dollar. The three-year government bond yield added 1.3 basis points to 1.322 percent and the five-year bond 0.1 basis point to 1.392 percent in the morning.
The U.S. Fed Reserve percent on Wednesday (local time) lowered the target range for its key interest rate by 25 basis points to between 1.75 percent and 2 percent, and suggested more cuts within this year if the U.S. economy grows weaker amid lingering concerns over the protracted trade war between the U.S. and China.
The Korean central bank is also under pressure to cut the benchmark rate to aid the economy grappling with trade challenges and deflationary risk. The bank lowered its benchmark rate to 1.50 percent, just a quarter-percentage point off the historic low of 1.25 percent, in July and will likely push it further down in the meetings of October or November.
By Kim Yeon-joo and Cho Jeehyun
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]