Korean Won Gains as BOK Chief Defends FX Interventions in U.S. Talks

The South Korean won firmed in Asia trading after Bank of Korea Governor Rhee Chang-yong said recent foreign-exchange interventions were designed to slow the currency’s slide toward KRW 1,400 per dollar. Speaking to reporters on Thursday, Rhee said the central bank has been intermittently selling dollars for the past one to two years to curb excessive volatility and that the measures have helped stabilise markets despite persistent capital outflows for overseas investments. Rhee added that Seoul is in regular contact with the U.S. Treasury and believes Washington views the interventions as constructive. The comments come as the won approaches levels last seen during the 2022 turmoil, heightening scrutiny of Korea’s policy stance ahead of upcoming currency-manipulation assessments by the United States.