Seoul: The South Korean won fell to its lowest point in over five months on Monday, influenced by uncertainties following a recent tariff conflict between the United States and China, sparking fears of another trade war between the two nations. The won was valued at 1,425.8 against the U.S. dollar at 3:30 p.m., a drop of 4.8 won from the previous session’s close. This marks the weakest point for the currency since April 29, when it closed at 1,437.3 won.
According to Yonhap News Agency, the ongoing decline in the local currency against the U.S. dollar prompted the South Korean finance ministry to make a rare verbal intervention earlier in the day. The ministry stated it would closely monitor the foreign exchange market with a sense of “vigilance.” “The foreign exchange authorities are closely monitoring the market with a sense of vigilance as the won’s volatility has recently increased due to internal and external factors,” the Ministry of Economy and Finance communicated in a brief message.
This marks the first instance of “verbal intervention” by the foreign exchange authorities since April of the previous year.