Korean won stabilising against dollar, hopes for alignment with market expectations
Finance Minister Koo Yun-cheol said the Korean won has been stabilising against the US dollar following its depreciation amid the ongoing US-Israeli war against Iran, expressing hopes that it will align with market expectations.
Koo made the remarks during a meeting with Korean reporters in Washington, as the Korean currency strengthened to the 1,460 won range against the greenback after Iran's reopening of the crucial Strait of Hormuz, amid expectations that the United States and Iran will reach a deal to end the war, reports Yonhap news agency.
"As the (won-dollar) exchange rate has been stabilising in the 1,460 won-per-dollar range, I think we can discuss that matter if need be," Koo said, responding to a question about whether he plans to discuss the issue during a meeting with US Treasury Secretary Scott Bessent.
The minister voiced hopes that the Korean won will appreciate against the dollar in line with market expectations.
"It is something to be determined by the market, but considering South Korea's economic fundamentals, there might be expectations in the market," he said. "I hope it reaches a level that people expect the Korean currency to be at."
Koo was in the U.S. capital to attend meetings of the G20 finance ministers and central bank governors.
He underscored that following the meetings, he realised that the international community has high expectations for South Korea's economy.
"I felt that interest in the Korean market has been on the rise," he said.
He added, "As Iran allowed passage (through the Strait of Hormuz), financial markets have stabilised and the stock market has surged. Against this backdrop, I felt South Korea can be in a (good) position in the world (economy) should (the government) manage (economic issues) well."
