S. Korea hints at intervention in FX market

SEJONG -- South Korea's finance minister said Friday the government will act boldly if volatility rises in the foreign exchange market.

Finance Minister Hong Nam-ki said "herd behavior" has been seen recently in the foreign exchange market and speculative trading has caused some moves in the Korean currency, referring to a one-sided movement.

"The government will act boldly with its market stabilization measures if herd behavior becomes excessive in the foreign exchange market," Hong said.

On Thursday, the Korean currency closed at 1,239.60 won against the US dollar, down 5.2 won from the previous session's close.

Hong said the Korean currency's moves may have been affected by volatility in the Chinese yuan amid heightened tensions between Washington and Beijing as China voted for a new security law on Hong Kong. (Yonhap)