SEOUL (Reuters) – South Korea’s finance ministry said on Friday authorities would take immediate and decisive action if necessary to respond to excessive volatility in the currency market.
Authorities are prepared to use a 94 trillion won ($68 billion) market stabilization program to stabilize financial markets if necessary, said a statement quoting Finance Minister Choi Sang-mok.
“With regard to the foreign exchange market, the minister emphasized that immediate and decisive action would be taken against market fluctuations that deviate sharply from economic fundamentals,” the statement said.
The comments came after sources said Israel has attacked Iran, roiling financial markets. The Korean won weakened as much as 1.4% against the dollar on Friday and the stock index fell as much as 3.1%.
Choi, currently in Washington, made the comments during an emergency conference call with senior ministry officials aimed at assessing the domestic implications of the military conflict in the Middle East.
($1 = 1,382,4200 won)
