Seoul retained on FX intervention watch list by Washington

[Provided by Maekyung Media Group]

South Korea remained on the U.S. “monitoring list” of major trading partners meriting “close attention to their FX practices and macroeconomic policies along with China, Japan, Germany, Malaysia, Singapore, and Taiwan, according to U.S. Treasury Department in its semiannual report to Congress Thursday. Washington added it “is cognizant that a range of approaches by developing and emerging economies to global economic headwinds may be warranted in certain circumstances.” U.S. suspects Seoul has sold a net $38 billion for a year until June to prop up the local won and would have since upped USD-selling intervention as the USD went above 13-year high of 1,400 won from September. USD-selling activity does not fall under U.S. censure. USD sharply eased this week, losing 2% from previous closing Friday to 1,336.8 won on lower-than-expected U.S. inflation data.