YONHAP reported S. Korea’s finance minister said on Friday the government will
closely monitor the domestic government bond market as long-term government bond
yields in major economies, including the US, Japan and Europe, have risen to
multi-decade highs amid higher fiscal spending and Middle East uncertainty. He
said authorities will track issuance and trading activity and seek to lower
corporate and household funding costs. The minister noted the won weakened to
1,300 per USD this week for the first time; it had earlier weakened to around
1,550 in early July, a move attributed to a record current-account surplus. He
warned the exchange rate faces two-way risks from Middle East geopolitical
tensions and major central banks’ policies and said the government will stay
vigilant and respond to market moves.
