Min-ho Shin, Gounee Yang

Global Economic News

SOUTH KOREA’S foreign exchange authority Monday issued a verbal warning against volatile currency market movement as the won fell to its weakest against the U.S. dollar since March 2020.

“The government is keeping eyes close to the recent foreign exchange rate trend and situation,” said an official from the foreign exchange authority.

It is the second time this year that South Korean financial authorities have intervened in its foreign exchange market in a bid to support the country’s currency.

As the U.S. Fed is expected to aggressively tighten the monetary policies, the dollar-won exchange rate continued to increase. After the official verbal intervention of the foreign exchange authority, the dollar-won exchange rate rose 7 won to 1246.1 won.

The won closed at 1,249.9 per U.S. dollar on the onshore settlement platform Monday, 0.86% lower than its previous close and marking its lowest level since March 24, 2020.