Bank of Korea chief vows decisive action on one-sided FX moves

Bank of Korea Governor Shin Hyun-song has stated his intention to respond decisively to one-sided movements in the foreign exchange market. According to Yonhap News, Shin said he sees potential for the South Korean won to strengthen considerably if the situation in the Middle East improves. He identified the geopolitical tensions in the Middle East as the most important factor driving the won's current weakness, noting that it stimulates risk-averse market dynamics. Shin also added that for oil-importing nations, the exchange rate is heavily influenced by crude oil prices. The U.S. dollar-won exchange rate is currently trading at 1,506.78, up 0.41% from yesterday.