South Korea to take decisive action if needed to stabilise FX market

By Thomson Reuters Apr 19, 2024 | 12:04 AM

SEOUL (Reuters) -South Korea’s finance ministry said on Friday that authorities would take immediate and decisive action if it became necessary to respond to excessive volatility in the foreign exchange market.

Authorities are ready to utilise a 94 trillion won ($68 billion) market stabilising programme if needed to stabilise financial markets, a statement quoted Finance Minister Choi Sang-mok as saying.

“With respect to the foreign exchange market, the minister emphasised that immediate and decisive action would be taken against market fluctuations that deviate greatly from economic fundamentals,” the statement said.

The comments came after sources said Israel has attacked Iran, roiling financial markets. The Korean won weakened by as much as 1.4% against the dollar on Friday and the KOSPI stock index dropped as much as 3.1%.

Choi, currently in Washington, made the comments in an emergency meeting held via telephone with senior ministry officials aimed at assessing the domestic implications of the military conflict in the Middle East.

($1 = 1,382.4200 won)

(Reporting by Jihoon Lee; Editing by Sonali Paul and Edwina Gibbs)