As the won-dollar exchange rate against the U.S. dollar rose past the mid-1,500 won range, the foreign exchange authorities issued verbal intervention.
The Bank of Korea and the Ministry of Economy and Finance said on the 8th, "In the recent foreign exchange market, beyond supply-demand factors, some speculative foreign exchange transactions such as non-deliverable forwards (NDF) appear to have increased volatility," adding, "We will never tolerate excessive volatility and one-way herding relative to fundamentals and will respond forcefully."
The foreign exchange authorities judged that, amid net selling of domestic stocks by foreign investors and rising tensions in the Middle East, speculative transactions also joined in, pushing up the won-dollar exchange rate. They said the size of transactions betting on a decline in the won's value outside the Seoul foreign exchange market is growing.
That day, the won-dollar exchange rate opened at 1,555.2 won, up 16.1 won from the previous trading day. It was the first time since March 6, 2009 (1,590 won), during the global financial crisis, that trading began above 1,555 won. The won-dollar exchange rate finished weekly trading at 1,539.1 won on the 5th, but in overnight trading it climbed intraday to 1,561.5 won. This, too, is the highest level since March 2009, during the global financial crisis.
After the market opened that day, the won-dollar exchange rate fell, reaching 1,546.2 won at about 10:04 a.m. But it began rising again, hitting 1,550.95 won at about 11:20 a.m.
Earlier, on the 7th, a weekend day, Deputy Prime Minister for Economic Affairs and Minister of Economy and Finance Koo Yun-cheol held an "emergency market situation review meeting" and said, "Excessive expansion of exchange rate volatility is not desirable for our economy," adding, "We will not tolerate excessive volatility and one-way herding."