South Korea's foreign exchange authorities stated on June 8 that they will not tolerate excessive volatility or one-sided movements in the currency market and will respond strongly to such developments.
The Bank of Korea and the Ministry of Economy and Finance noted that recent fluctuations in the foreign exchange market have been exacerbated by speculative currency trading, including offshore non-deliverable forward (NDF) transactions. This statement was made by Yoon Kyung-soo, head of the Bank of Korea's International Department, and Lee Hyung-ryul, head of the International Finance Division at the ministry, during a verbal intervention.
This intervention came as the won-dollar exchange rate surpassed 1550 won for the first time since the financial crisis during weekly trading. On this day, the exchange rate reached as high as 1555.2 won against the U.S. dollar in the Seoul foreign exchange market.
Following the verbal intervention, the rate's increase moderated somewhat. As of 2:44 PM, the won-dollar exchange rate was at 1540.7 won. At the same time, the dollar index, which measures the value of the dollar against six major currencies, stood at 100.05.
On June 5, U.S. non-farm payrolls for May showed a significant increase of 172,000 jobs, far exceeding market expectations of 80,000. This positive data has led to rising expectations for U.S. interest rate hikes, contributing to the dollar's strength.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.