South Korea Finance Minister vows measures to stabilise market volatility if needed

South Korea Finance Minister vows measures to stabilise market volatility if needed

SEOUL (Reuters) – South Korea’s finance minister stepped up warnings on Monday that the government is ready to act to counter any renewed volatility in currency markets after the won has extended declines against the dollar to hit the lowest in a year and a half.

“We will swiftly act according to contingency plans and will play any necessary role to respond to any excessive volatility in forex and other financial markets,” Choi Sang-mok said at a policy meeting urgently scheduled to discuss escalating tensions in the Middle East.

He also said the government will extend a tax cut on fuel consumption by two months until the end of June in an effort to curb inflation amid escalating global geopolitical risks.

© Reuters. FILE PHOTO: South Korea Vice Finance Minister Choi Sang-mok speaks during an interview with Reuters in Seoul, South Korea, June 16, 2016.  REUTERS/Kim Hong-Ji/File Photo

The comments come as Iran launched explosive drones and fired missiles at Israel late on Saturday in its first direct attack on Israeli territory, a retaliatory strike that raised the threat of a wider regional conflict.

South Korean currency markets open at 0000 GMT.

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