South Korean Officials Pledge Action Against Speculative FX Trades as Won Weakens
Top economic policymakers held an emergency meeting Sunday and said they will investigate and punish market-disruptive trading. The won reached its weakest level against the U.S. dollar since 2009 amid foreign investor selling.
YonhapSouth Korean economic and financial officials pledged Sunday to take stern action against speculative trading and market-disruptive activities as the won weakened sharply. The officials met in an emergency session to review foreign-exchange volatility, according to the Ministry of Finance and Economy.
The won traded at 1,539.1 won per U.S. dollar on Friday afternoon, down 9.4 won from the prior session and marking its lowest level since March 2009.
net selling by foreign investors has driven the currency lower, coinciding with fading expectations of a diplomatic resolution to the Middle East conflict. Officials said they will examine whether speculators are exploiting the decline or attempting to distort prices.
Authorities stated they are monitoring transactions that disrupt market functions or exceed normal customer order volumes at specific times. They added that inspections by the central bank and the financial regulator will determine any enforcement steps.
Finance Minister Koo Yun-cheol said market volatility could increase again depending on developments in the Middle East conflict and U.S. inflation trends. Officials said they will maintain round-the-clock monitoring and coordinate swift countermeasures with relevant agencies.
