South Korea’s finance minister said Tuesday that the government should intervene in the foreign exchange market if exchange rates are biased to one currency.

“We’re well aware that all prices are set by the market (and not governments) and we don’t intend to go against it, but if the (foreign exchange) rates are biased to one currency, a government’s action is needed,” Minister of Strategy and Finance Kang Man-soo said.

Kang denied there was any truth to the market’s widespread belief that the administration wanted a stronger dollar against the won to boost Korea’s export competitiveness.

“(The pair) was on an upward trend (when President Lee Myung-bak’s administration took power in late February). Oil prices were rising and foreign investors were selling local shares. We didn’t try to boost the foreign exchange rates,” Kang said.

Source: http://www.djnewswires.com/eu

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