▲ An official sorts U.S. dollar banknotes at Hana Bank's anti-counterfeiting response center in Seoul on April 3, 2026. (Yonhap)

BOK nominee-FX market

BOK nominee Shin says ready to respond to excessive FX volatility

SEOUL, April 13 (Yonhap) -- Shin Hyun-song, the Bank of Korea (BOK) governor nominee, said Monday that authorities stand ready to respond to excessive foreign exchange volatility if needed, though the won's recent weakness does not signal a crisis given South Korea's ample foreign currency reserves and strong economic fundamentals.

Shin made the remarks in written responses submitted to the National Assembly ahead of his confirmation hearing scheduled for Wednesday, noting that excessive currency depreciation could heighten inflationary pressures and increase the burden on domestic companies and households.

"Though the won has recently eased to the 1,480 won range per dollar, its (depreciation against the U.S. dollar) following the Middle East conflict has been larger than that of other currencies, and uncertainty remains high. Authorities will continue to closely monitor foreign exchange market conditions," he said. "There is a need to respond appropriately, if necessary, to excessive exchange rate movements."

Shin, however, said the recent weakening of the won should not be interpreted as a sign of crisis, as current foreign exchange reserves are "at a sufficient level" to serve as a buffer against external shocks.

The country's strong external fundamentals and inflows tied to its inclusion in the World Government Bond Index (WGBI) could help ease pressure on the won-dollar exchange rate if tensions in the Middle East are resolved, he added.

The local currency has recently hovered around the psychologically significant 1,500 won mark, falling to as low as its weakest level since 2009, when the country was grappling with the global financial crisis as the Middle East conflict that began in late February has pushed up global oil prices and stoked fears of broader economic impacts.

On Monday, the currency opened at 1,495.4 won per dollar, down 12.9 won from the previous session's close, after U.S. President Donald Trump ordered a blockade of all ships entering or leaving the Strait of Hormuz following high-stakes peace talks with Iran that failed to make a breakthrough.

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