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Rare Intervention: S.Korea Pushes Won to 9-Month High
31 Jul
Summary
- South Korea's foreign exchange authorities intervened by selling dollars.
- The intervention strengthened the won to its highest point in nine months.
- This action potentially coordinated with Japan's yen-buying intervention.
South Korean foreign exchange authorities executed a rare dollar-selling intervention on Thursday, significantly boosting the national currency, the won. The intervention propelled the won to its strongest position in nine months, marking a 2% appreciation against the dollar. This action occurred alongside Japan's intervention in New York markets, where authorities bought yen and sold dollars to support the Japanese currency from its multi-decade lows.
The won's performance this month has been remarkable, with a gain of over 8%, positioning it for its most substantial monthly jump since March 2009. The currency had previously hit a 17-year low in the preceding month. Officials from the finance ministry declined to confirm the intervention. However, market observers suspect a coordinated effort between South Korea and Japan, given prior statements about close communication on foreign exchange matters between the two nations.
