S. Korea’s c. bank warns of renewed won weakness

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By Nada Ali

The Bank of Korea (BOK), expressed worries on Wednesday about the Korean Won (KRW) facing downward pressure in its latest financial stability report. The BOK vowed to closely monitor risks and intervene in markets if needed.

South Korea’s central bank report recognises the challenge of fully eradicating the risk of a renewed downward pressure on the won.

External factors, such as global economic conditions and geopolitical tensions, were highlighted as potential triggers for this risk, including delayed US rate cuts, geopolitical tensions, and weakening regional currencies.

The finance chiefs of South Korea and Japan expressed concern about the sharp decline in their currencies this week and pledged to defend them as they approached of 1,400 and 160 against the dollar, respectively.

The BOK emphasised its commitment to maintaining financial stability.  The report outlines plan to:

  • Strengthen monitoring of both external and internal risk factors.
  • Co-operate closely with other authorities to address unexpected market instability.
  • Deploy stabilising measures in a timely manner when necessary.

Attribution: Reuters

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