Government intervention has reduced the won-dollar exchange rate to the W1,030 per dollar range. On the Seoul forex market Tuesday, the dollar closed the day at W1,032.7, down W10.2 from Monday. The rate has fallen W17.7 in two days this week. The government is believed to have sold some US$2 billion on Tuesday. In a first ever joint news conference Monday, the Ministry of Strategy and Finance and the Bank of Korea vowed to rein in the exchange rate even if they have to use the country's foreign reserves. But whether the intervention will have lasting effects remains to be seen. "The government has dumped $2 billion a day but purchase orders for U.S. dollars haven't decreased at all," said Lee Jin-woo, chief researcher at National Agricultural Cooperative Federation Futures. "Demand (for dollars) is still there and it's...
[read full story]
Your Web Site
