The South Korean won marked its worst weekly losses in about four months against the world's reserve currency on Friday as confidence mounted that the U.S. Federal Reserve will continue reducing the amount of monetary stimulus measures in 2014, according to Bloomberg.
The Federal Open Market Committee on Wednesday opted to slash stimulus by $10 billion, and Bloomberg-polled economists said the Fed's policy-making arm is poised to follow suit during the body's next seven meetings. That harmed the won because asset purchases spur the inflow of dollars into emerging market economies.
"In the short term, this could result in increased volatility in financial and foreign currency markets," South Korean Finance Minister Hyun Oh-seok said during a policy maker meeting in Seoul, according to the Yonhap News Agency. "But the impact would be limited given our healthy economic fundamentals."
The won marked weekly drops of roughly 0.8 percent this week, notching the biggest loss since early August.
The government of South Korea said on Thursday that the reduction of stimulus by the U.S. means the globe's largest economy is leading the recovery, according to the Yonhap News Agency.
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