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A Verbal Intervention from South Korea Caused the USD/KRW to Fluctuate Near 1,300

 On Thursday, South Korea's Finance Minister Choo Kyung-ho spoke out, saying that they will "try to limit detrimental impact from falling won."

He stated that if necessary, they "would announce measures to calm the FX market."



The Market Reaction

The South Korean government's efforts to boost the South Korean won temporarily aided the struggling currency as USD/KRW fell from daily highs of 1,302.79 points. As at the time of writing, the USD/KRW pair is up by 02.17% on the day, trading at 1,300 points.

In response to fears of an impending global recession, the won fell below the 1,300 level against the US dollar for the first time in 13 years.

According to Reuters, "the won has depreciated more than 8% this year, following an 8.6% plunge in 2021 that was the fastest annual decrease since 2008."

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