South Korea: Will actively respond to excessive volatility in the forex market

Dhwani Mehta FXStreet

South Korean Foreign Minister Cho Tae-yul said on Wednesday, “they will actively respond to excessive volatility in the forex market.”

Additional comments

US President Biden expressed confidence in Korean democracy and support for the bilateral alliance in a recent phone call.

Will make every effort to bring diplomacy back to normal and rebuild trust.

Mentioned plans regarding the North Korea nuclear issue will be prepared before the new US administration takes office.

Communication with the Trump team has been affected by recent events and will make efforts to keep it smooth.

Yoon's martial law attempt undercut political momentum for communication built with Trump.

There are limitations with Yoon suspended from duty and it will take time to restore momentum.

Trying to restore communication with the Trump side as soon as possible despite limitations.

Cannot confirm whether Trump has invited the South Korea president and will consider this while monitoring the situation.

Trump has raised prospects for the end of the Ukraine war but noted it would take a considerable amount of time until it happens.

Expressed openness to any opportunities for negotiation with North Korea, including on the nuclear issue, and said they will be proactive.

Announced they will devise a roadmap to prepare for Trump’s potential resumption of talks with North Korea.

Expect China's Xi to attend next year’s APEC Summit in South Korea.

Considering reciprocal measures to China’s visa exemption.

Separately, South Korean Finance Minister Choi Sang-mok comforted markets on Wednesday, saying they “will utilize all available resources to manage the economy as stably as possible.”

Market reaction

The South Korean (KRW) seems to be finding fresh demand on the above comments, as USD/KRW lost 0.24% on the day to trade 1,436, as of writing.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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