South Korea aims to cap dollar-won rate at 1,385, with authorities prepared to intervene if it weakens beyond this level.

South Korea's foreign exchange authorities aimed to cap the dollar-won rate at 1,385, viewing it as a critical level for the won's stability against the dollar, according to two sources involved in policy discussions. If the won weakened beyond this level, the Bank of Korea and finance ministry were prepared to intervene in the USD/KRW spot market. The won has lost 6.5% against the dollar this year, causing concern for policymakers in South Korea's fourth-largest economy.

June 19, 2024
3 Articles