Gov't to take measures against excessive currency volatility
Finance Minister Choo Kyung-ho speaks during a press conference at the Government Complex in Sejong, central Korea, June 20. Yonhap
The government is ready to take appropriate action in response to any one-sided movements in the local foreign exchange market, the country's top financial policymaker said Monday, in his latest remarks apparently aimed at easing growing market anxiety amid the U.S.' aggressive monetary tightening and worries over a global recession.
"The relevant authorities will take action in an appropriate manner if there is a one-side movement in the market due to anxiety," Finance Minister Choo Kyung-ho told reporters.
The minister, however, declined to comment on what would constitute a proper range of the won-dollar exchange rate, saying that such remarks could cause misunderstanding in the market.
The local currency has been losing ground against the U.S. dollar as investor appetite for risk has declined amid global inflation and recession woes. On Monday, the won fell to an intraday low for this year of 1,295.3 won against the greenback.
Last week, the Fed hiked its interest rate by 0.75 percentage points, the first such steep rate increase since November 1994. Worries are growing that the U.S. central bank might continue to push sharp rate hikes down the road to tame America's highest inflation in about four decades.
In a verbal intervention to forestall further declines in the won ahead of the Fed's rate decision, the finance ministry said last week that the authorities will take measures to stabilize the foreign exchange market, if needed. (Yonhap)