By Kang Yoon-seung
SEJONG, Oct. 5 (Yonhap) — South Korea’s finance minister said on Thursday the government is ready to take action if necessary as financial markets may see increased volatility due to a rise in U.S. bond yields.
The comment came after South Korean stocks fell to a six-month low the previous day as investors expected the U.S. Federal Reserve to maintain its hawkish stance for now. The South Korean won also fell against the US dollar, hitting an 11-month low the previous day.
“Recently, financial markets at home and abroad are experiencing increased volatility as U.S. Treasury yields have skyrocketed and the U.S. dollar has also remained strong due to concerns over ongoing monetary tightening,” Treasury Secretary said Choo Kyung-ho during a meeting with economy-related ministers.
Choo said the government will continue to closely monitor the situation in the financial market and take action if necessary.
“To prevent the foreign exchange market from becoming unstable due to speculative transactions by foreign firms, we plan to take proactive measures and take measures to stabilize the bond market when necessary,” Choo said.
Referring to consumer prices, which rose 3.7 percent year-on-year in September, the finance minister said the growth was due to higher global oil prices, but inflation is expected to begin to stabilize this month.
The government will also unveil separate measures to stabilize prices of agricultural and petroleum products this month, Choo added.
Finance Minister Choo Kyung-ho speaks during a meeting in Seoul on Oct. 5, 2023, in this photo released by the Ministry of Economy and Finance. (PHOTO NOT FOR SALE) (Yonhap)
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