South Korea, Indonesia Step Up Currency Defense as Won Nears 2009 Low and Rupiah Hits Record
Updated
Updated · Bloomberg · Jun 4
South Korea, Indonesia Step Up Currency Defense as Won Nears 2009 Low and Rupiah Hits Record
2 articles · Updated · Bloomberg · Jun 4
Summary
South Korea and Bank Indonesia both pledged stronger action Thursday to steady their currencies as regional FX volatility intensified.
The won slid to near its weakest level against the dollar since 2009, while the rupiah fell to a record low, prompting Seoul to vow curbs on excessive swings and Jakarta to intensify intervention.
High energy costs and bets on further Federal Reserve rate hikes are pressuring Asian currencies by worsening import bills and supporting the dollar.
The moves extend Seoul's earlier warning that it was closely monitoring markets and ready to take necessary measures to prevent anxiety from spreading.