ID :
208202
Tue, 09/20/2011 - 08:55
Auther :
Shortlink :
https://oananews.org//node/208202
The shortlink copeid
S. Korea's currency market appears to be 'overreacting': official
SEOUL, Sept. 20 (Yonhap) -- South Korea's currency market appears to be "overreacting" in recent days, a senior finance ministry official said Tuesday, hinting at a possible intervention to ease the won's steep decline.
"Given the won's recent movements, the market seems to be overreacting," Choi Jong-ku, a deputy finance minister, told Yonhap. "I think that there will be a correction."
His remarks come as the nation's local currency has been tumbling in recent trading amid growing jitters over the debt crisis in Greece and other European countries.
The local currency closed at 1,137 won to the greenback on Monday, down 24.5 won from Friday's close, marking the lowest level since Dec. 29, 2010. The won was trading at 1,146.95 won as of 10:41 a.m.
On Thursday, the finance ministry said in its first verbal market intervention in 17 months that the excessive fluctuations in the currency exchange rates are not desirable and the government is closely monitoring currency market conditions.
Market jitters intensified after Standard & Poor's, one of the world's major credit appraisers, lowered its credit rating on Italy.
Choi, however, dismissed the worries that the credit downgrade could affect South Korea's financial market, saying that the government has expected it and the nation's fundamentals "in many respects" remain strong.
"Given the won's recent movements, the market seems to be overreacting," Choi Jong-ku, a deputy finance minister, told Yonhap. "I think that there will be a correction."
His remarks come as the nation's local currency has been tumbling in recent trading amid growing jitters over the debt crisis in Greece and other European countries.
The local currency closed at 1,137 won to the greenback on Monday, down 24.5 won from Friday's close, marking the lowest level since Dec. 29, 2010. The won was trading at 1,146.95 won as of 10:41 a.m.
On Thursday, the finance ministry said in its first verbal market intervention in 17 months that the excessive fluctuations in the currency exchange rates are not desirable and the government is closely monitoring currency market conditions.
Market jitters intensified after Standard & Poor's, one of the world's major credit appraisers, lowered its credit rating on Italy.
Choi, however, dismissed the worries that the credit downgrade could affect South Korea's financial market, saying that the government has expected it and the nation's fundamentals "in many respects" remain strong.
