Svmuu reported that South Korea's Financial Supervisory Service (FSS) has stated that tensions in the Middle East and market expectations of a Federal Reserve rate hike are driving fluctuations in the Korean won exchange rate. The FSS has requested banks to strengthen risk management measures to cope with market volatility.
Furthermore, the FSS, together with the Bank of Korea, will conduct inspections on speculative Korean won transactions. The FSS emphasized that excessive volatility and unilateral positions in the foreign exchange market are undesirable, and reiterated that South Korea's economic fundamentals and external credibility remain solid. (Jinshi)