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Bank of Korea Nominee Vows to Act on Excessive Won Slide as Currency Nears 1,500

Markets see the message as reducing scope for rate cuts.

Overview

  • Shin Hyun-song, in written answers to lawmakers on Monday, said authorities will act if the won’s drop turns excessive.
  • The won briefly weakened 1.1% to 1,499.7 per dollar after U.S.–Iran talks over the weekend failed to reach a deal.
  • He said the exact exchange-rate level is not the concern because domestic liquidity looks stable.
  • He flagged that price pressure from the Middle East conflict will guide policy after the central bank held rates last week and cut its growth outlook.
  • He noted that strong semiconductor exports and an extra budget help support growth, though a weaker won can raise fuel and import costs for households and firms.