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South Korea’s won fell to a three-week low against the US dollar in Thursday morning trade as the country’s finance minister voiced concern about the impact of a weakening yen on the competitiveness of Korean exports.
The won was down 0.7 per cent at 1,087.0 at 0314 GMT, after falling as low as 1,089.5.
Earlier in the day, Minister of Finance Choi Kyung-hwan also said at a government meeting that the authorities would take action should foreign exchange rates move too rapidly.
“Investors thought Choi’s remarks (on exchange rates) could be a signal of the government’s willpower to block the appreciation of the won,’’ said an analyst Park Yuna at Dongbu Securities.
High equity valuations
On the stock market, Seoul shares fell to a near one-month low, tracking overnight decline on Wall street after US Federal Reserve Chair Janet Yellen said high equity valuations pose potential dangers to the US financial system, but that risks to stability were in check.
The Korea Composite Stock Price Index was down 1.4 per cent at the midday trading break at 2,076.01 points, on track for its steepest daily loss in nearly four months.
Cheil Industries Inc slid 12 per cent to a near 4-week low after local media reported parent Samsung Group would not turn the fashion and leisure firm into a holding company to pave the way for generational succession. June futures on three-year treasury bonds were up 0.07 points at 108.58 as of 0314 GMT.
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