USD/KRW falls after S. Korea says rapid FX rate changes are a problem

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USD/KRW falls after S. Korea says rapid FX rate changes are a problem

South Korea’s Finance minister nominee Choo Kyung-ho said that he respects the foreign exchange rates set by the market forces bu

South Korea’s Finance minister nominee Choo Kyung-ho said that he respects the foreign exchange rates set by the market forces but that rapid changes in the rate are a problem.

He responded to a lawmaker’s question during a confirmation hearing,

Choo refused to comment on the prospects of the South Korean won (KRW) falling as low as the psychological 1,300-won level per dollar.

He said that he preferred a delay by about two years of a planned financial investment income tax and a reduction in the stock transaction tax.

Market reaction

Having faced rejection near 1,267 on multiple occasions, USD/KRW came under pressure on the above comments.

The spot is currently trading near daily lows of 1,265.21, still up 0.16% on the day.

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