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

Dhwani Mehta FXStreet

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.

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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