South Korean finance minister views dollar-won near 1,400 as new normal, Yonhap reports

South Korean finance minister views dollar-won near 1,400 as new normal, Yonhap reports

Choi Sang-mok, who is also the deputy prime minister for economic affairs, said “the current 1,400 level should be seen as different from the 1,400 in the past,” according to the report.

Choi added that South Korea’s economic conditions did not make it possible to raise interest rates to defend the local currency, in a meeting with reporters accompanying him during a trip to New York, Yonhap reported.

The won has weakened nearly 5% against the dollar this month and earlier on Wednesday hit its lowest level since late July at 1,385.1. It last touched the psychological threshold of 1,400 in mid-April.

© Reuters. Korean Finance Minister Choi Sang-mok speaks during a trilateral meeting on the sidelines of the IMF/G20 meetings, at the U.S. Treasury in Washington, U.S., April 17, 2024.  REUTERS/Kevin Lamarque/ File Photo

Soon after Yonhap’s report, the finance ministry said in a text message: “Deputy Prime Minister Choi Sang-mok did not say that the FX rate of 1,400 won per dollar was the new normal at a meeting with correspondents in New York’s Manhattan on the 22nd.”

About half a dozen outlets reported the comments, but some, including Yonhap, later removed their articles without explanation.

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