Foreign exchange authorities on Tuesday warned that they will closely monitor the currency exchange fluctuations for any signs of speculative trading as the Korean won sharply depreciated against the U.S. dollar.
The warning came less than an hour after President Yoon Suk Yeol pledged risk management through the government’s emergency economic meetings to ensure that the decline in the won’s value does not adversely affect local markets.
On Monday, the local currency soared to the one-thousand-330-won level against the greenback for the first time in over 13 years amid the Federal Reserve’s aggressive rate hikes.
The won hit a yearly high of one-thousand-345-point-two won against the dollar soon after the market opened on Tuesday, before a slight rebound following the authorities’ verbal intervention.
A financial authority was quoted saying that it may be necessary to maintain a sense of market vigilance by issuing such warnings despite the inevitable weakening of the won on the back of the global strength of the dollar.
Source: KBS World Radio