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Sorry, please use a different browser. Bank of Korea governor close: “Temporarily strong dollar”… Concerns over delay in interest rate cut
[앵커]
As the won-dollar exchange rate, which had been soaring, seems to be calming down somewhat, the verbal intervention of the foreign exchange authorities seems to be having an effect.
As the United States reveals its intention to extend austerity measures amid the Middle East crisis, it has become harder to predict when Korea will lower its benchmark interest rate.
This is reporter Kang Eun-na-rae.
[기자]
Bank of Korea Governor Lee Chang-yong visited the United States to attend meetings of the International Monetary Fund and the IMF.
Recently, we have repeatedly emphasized market stabilization measures related to exchange rate volatility.
“The exchange rate is slightly off the level that would be tolerated by market fundamentals. We have resources and effective intervention tools to mitigate volatility.”
Governor Lee analyzed that the current monetary policy of the United States, tensions in the Middle East, and the influence of the Chinese yuan and Japanese yen operate in a complex manner.
However, this strong dollar phenomenon was found to be “temporary.”
Unlike 2022, when the value of the dollar increased due to the possibility of prolonged high interest rates in the US, the recent strength of the dollar is due to the postponement of the US interest rate cut.
“(The current strong dollar) is due to the delay in the interest rate cut in the US, I think that once the market adjusts to the new situation in the US, the pressure on currencies the emerging market is disappearing.”
The problem is that the increase in international oil prices amid the unstable situation in the Middle East is driving global prices.
Some analysts say the stance of the US central bank, the Federal Reserve System, which says, “We will maintain the level of tightening as needed until price pressures ease” leaves room for a long period of rate hikes. high interest.
“If the war escalates further in an unexpected way, an additional strong dollar may occur.
In addition to the fatigue of high inflation and high interest rates, high oil prices and high exchange rates have also led to more uncertainty about the timing of the Bank of Korea’s key interest rate cut, which is expected to take place this July or August . year.
This is Kang Eun-na-rae from Yonhap News TV. (rae@yna.co.kr)
#Exchange rate #Bank of Korea #Lee Chang-yong #Interest rate
Yonhap News TV article inquiries and reports: KakaoTalk/Line jebo23
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