SEOUL, Aug 12 (Reuters) – South Korea does not target a specific level for the won but is closely watching the market as there may arise a need for the authorities to help ease increased volatility, the country’s finance minister said on Monday.
“As the volatility has increased on the international financial markets, including the foreign exchange market, the government is closely watching the markets to see if there is need to help reduce the volatility,” Minister Hong Nam-ki told reporters after a meeting with business people.
The won has been weakening against the dollar in recent weeks on a combination of factors including concerns about the U.S.-China trade war, expectations for a local interest-rate cut and falling exports.
Adding to the pressure, trade ties with Japan are cooling as Seoul said on Monday it would drop the bigger neighbour from its list of countries with fast-track trade status, weeks after Tokyo imposed similar export controls against it. (Reporting by Yena Park; Writing by Choonsik Yoo; Editing by Toby Chopra)