Koo Yun-cheol to respond immediately to increased exchange rate volatility
The government has signaled an immediate response to increased volatility in the won-dollar exchange rate. It aims to both curb anxiety and boost market stability expectations.
Deputy Prime Minister and Minister of Finance and Economy Gu Yooncheol said on the 4th that he would respond immediately if excessive concentration appears amid the increased volatility of the wondollar exchange rate.
At the joint market situation review meeting of related agencies held at the Government Seoul Complex, Deputy Prime Minister Gu said that, given the high external uncertainty, the government is closely monitoring the situation to prevent anxiety from spreading, and that if necessary, related agencies will work together to respond in a timely manner. He cited foreign investors' stock allocation adjustments, inflation concerns, and expectations of a domestic interest rate hike as background factors behind the increased exchange rate volatility.
On the day, the wondollar exchange rate reached the 1,530won range during trading, and in the process of responding to the rise in the exchange rate, South Korea's foreign exchange reserves for May were reported at $426.99 billion, down $880 million from a month earlier. The Bank of Korea explained that market stabilization measures, including a foreign exchange swap with the National Pension Service, had an impact.