As Asia's Worst Currency Keeps Dropping, Warnings Get Louder
- South Korea seen acting if won falls past 1,200 versus dollar
- Authorities have issued verbal warnings eight times in May
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Are South Korean authorities drawing a line in the sand for the won?
As the currency dropped around 2% this month toward 1,200 against the dollar, the Ministry of Finance and the Bank of Korea have jawboned the market on at least eight occasions. The rhetoric may have helped cap the won’s losses but selling still persists in the absence of more overt intervention by the authorities.