◀ anchor ▶
Following the US, this time a storm from the UK shook the world economy.
As the British government announced that it would drastically lower taxes to boost the sluggish economy, the pound plunged immediately.
The KOSPI and KOSDAQ also plummeted 3% and 5%, respectively, to the lowest level in two years.
First, reporter Kim A-young reports.
◀ Report ▶
The exchange rate soared as soon as the 9 a.m. market opened.
It broke through 1,420 won per dollar, and also broke through 1,430 won at 11 am.
In the end, it closed at 1,431 won for 1 dollar.
The won has depreciated the most this year.
The stock market also plummeted.
The KOSPI fell 3% and the KOSDAQ 5%.
In one day, the market capitalization of 71 trillion won evaporated.
The immediate cause is the announcement by the UK government last Friday.
The new cabinet in the UK has announced that it will reduce income and corporate taxes by 70 trillion won over the next five years to stimulate economic growth.
However, the British pound plummeted as fears of fiscal deterioration grew from the massive tax cuts.
1 pound is 1.07 dollars. It is the lowest level in nearly 40 years.
The global economy fluctuated along with the austerity measures from the US, the energy crisis from Europe, and the crisis theory from the UK.
The Chinese yuan broke through 7 yuan to the dollar for the first time in two years, and the Japanese yen also crossed 143 yen to the dollar despite government intervention.
Only the dollar is super strong day following day.
[김정식/연세대 경제학과 교수]
“We can predict that the Korean exchange rate will rise until the US interest rate rises, and it is highly likely that the rate will rise further by the end of the year.”
The government has come up with a number of ways to loosen the dollar in the market to calm the exchange rate, but it doesn’t seem to have much effect in the face of a super dollar.
This is Ayoung Kim from MBC News.
Video Editing: Lee Sang-min
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