South Korea pledges to take action if needed as Won weakens
The won rose 0.2% to 1,434.50 per dollar on Friday. Global funds have sold about $1 billion of the nation’s equities this week as of Thursday.
South Korea pledged to take action if needed to stabilize markets after the won declined to a six-month low.
Authorities will closely monitor international markets and will take timely action if needed, the finance ministry said in a mobile-phone message Friday after Finance Minister Koo Yun-cheol met with Bank of Korea Governor Rhee Chang Yong and financial regulators. The ministry did not elaborate on the measures.
The won weakened to the lowest since April on Thursday as foreign investors unloaded the nation’s stocks. The ministry’s comments come after a rare verbal intervention from authorities just last week, as a $350 billion investment pledge by South Korea to the US puts pressure on the currency.
“Authorities don’t appear to be actively stepping in,” said Moon Hong-Cheol, strategist at DB Securities Co. “The biggest factor for the won is the Korea-US tariff negotiations, and the exchange rate could move either way depending on the outcome.”
The won rose 0.2% to 1,434.50 per dollar on Friday. Global funds have sold about $1 billion of the nation’s equities this week as of Thursday.
