S. Korea may intervene if yen continues slide - Business News | The Star Online

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S. Korea may intervene if yen continues slide


  • Markets
  • Thursday, 2 Jan 2014

A senior South Korean finance ministry official has told Reuters that the government is prepared to intervene in the foreign exchange market if necessary, with the yen continuing to depreciate - Reuters Photo.

A senior South Korean finance ministry official has told Reuters that the government is prepared to intervene in the foreign exchange market if necessary, with the yen continuing to depreciate - Reuters Photo.


SEJONG: The yen's fall against the won has been expected to some extent but South Korea will closely monitor the situation and take action if necessary to mitigate any impact on the economy, Finance Minister Hyun Oh-seok said on Thursday.

"The US is reducing its quantitative easing while Japan is strengthening its own programme, so the yen's depreciation is inevitable," Hyun told reporters.

"Rapid (exchange rate) volatility does not help the economy, so the government is closely monitoring (the situation)."

Another senior finance ministry official, who declined to be identified, told Reuters that the government was prepared to intervene in the foreign exchange market if necessary.

The comments came as the bid rate for the yen-won cross touched its weakest level in more than five years. Because the currencies do not trade directly, local authorities would likely need to buy dollars to indirectly curb the yen's fall against the won should they decide to take such action – Reuters.

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