Updated
Updated · Reuters · Jun 4
South Korea Vows Market Action as Won Hits 1,530.8 per Dollar
Updated
Updated · Reuters · Jun 4

South Korea Vows Market Action as Won Hits 1,530.8 per Dollar

3 articles · Updated · Reuters · Jun 4

Summary

  • Finance Minister Koo Yun-cheol said authorities would closely monitor stock, bond and foreign-exchange markets and move immediately against excessive volatility, including herd-like trading in the won.
  • The won trimmed losses after the statement, trading down 0.3% at 1,523.6 per dollar by 0020 GMT after earlier sliding to 1,530.8, its weakest level since March 31.
  • Koo also pledged preemptive risk management for the domestic stock market and a response to excessive swings in bonds after a meeting of top economic policymakers reviewing market conditions.
  • The move extends South Korea's broader effort to steady its currency as regional authorities face pressure from volatile markets, high energy costs and expectations of higher U.S. interest rates.

Insights

Will the Bank of Korea risk a recession by raising interest rates to save the falling Won?
Can Seoul's financial war chest truly defend the Won against global geopolitical storms?
With allies hesitant to secure oil routes, is South Korea facing an unavoidable energy crisis?