Won loses 0.8%, peso hits record low in October 15 session after U.S. inflation data
Key Facts
The South Korean won fell 0.8% to 1,352.84 per dollar in early trading on Thursday, October 15, 2026, according to Reuters, as Asian currencies came under pressure following the release of U.S. inflation data. The Korean currency hit a two-week low at that level amid bets on a Federal Reserve interest rate hike. In the Philippines, the peso hit a record low of 63.09 per dollar during the same session, according to the agency's coverage. The Taiwan dollar fell to 32.320 per U.S. dollar in early trading, its lowest level since early August. The moves followed the release of U.S. consumer price data on October 14, which brought inflation back to the forefront of factors driving monetary policy expectations.
Data from the U.S. Bureau of Labor Statistics showed the consumer price index rose a seasonally adjusted 0.6% month on month in September, while annual inflation stood at 3.7%. Gasoline prices were a major driver of the monthly increase, rising 9.1% and accounting for more than half of the gain in the headline index, according to the bureau. The consumer price index excluding food and energy, which measures core inflation, rose 0.3% during the same month. On an annual basis, core inflation accelerated to 2.6% in September, compared with an increase of 2.4% in the period ending in August. The rise in gasoline prices thus coincided with an annual acceleration in the index excluding food and energy, two components the bureau separates out when reporting core inflation.
The Federal Reserve had raised interest rates by a quarter of a percentage point in its previous decision in September, according to the Federal Open Market Committee's statement. The target range for interest rates reached 3.75%–4% following that decision, before the release of September price readings. The central bank said in its policy statement that "inflation remains elevated," explaining the backdrop to its move to tighten monetary policy. It added that "today's monetary policy action will support a more rapid return of inflation to the Committee's 2% objective." It affirmed its commitment to price stability, saying: "The Committee will achieve price stability," in a pledge accompanying the announcement of the previous rate increase.
In economic developments following the session in which currencies fell, data released on October 16 showed U.S. import prices rose 1.1% month on month in September, according to the Bureau of Labor Statistics. The increase followed a monthly rise of 0.5% in August, marking an acceleration in the pace of imported goods price increases. In a separate release the same day, the Federal Reserve reported that U.S. industrial production grew 0.7% in September. Output had recorded a monthly increase of 0.1% in August before its growth accelerated the following month. In markets, Investing.com cited CME's FedWatch tool as showing that the probability of a rate hike at the October meeting fell on Friday, October 16, to about 17%, from around 28% the previous day.
In equities, South Korea's Kospi index closed the October 15 session down 7.6%, according to the Economic Times, coinciding with pressure on currencies. Heavy selling of semiconductor stocks in South Korea and Taiwan added pressure on their currencies, according to the newspaper. MSCI's broad emerging-market currency index also fell 0.3% during Asian trading that day. At the close of the week ending Friday, October 16, the dollar index posted a weekly loss of 0.4%, according to Investing.com. In a subsequent development on Tuesday, October 20, the Japanese yen strengthened to 158.17 per dollar, according to the website's coverage. The next Federal Open Market Committee meeting is scheduled for October 27 and 28, according to the Federal Reserve's official calendar. The following committee meeting is on December 8 and 9.