South Korea flag FX volatility risks as policy divergence bites (they should call the RBI)

South Korea's finance minister has expressed heightened concern over rising FX volatility, indicating increasing vigilance amidst global monetary policy divergence. The remarks hint at the potential for intervention if volatility escalates, mirroring actions taken recently by the Reserve Bank of India to curb rupee fluctuations. The focus remains on preventing sharp currency movements which could exacerbate imported inflation and undermine investor confidence. The finance ministry’s historical role as the lead in FX policy suggests that if sustained won weakness occurs, official action may be taken in response to perceived speculative movements. While immediate action is not indicated, maintaining FX stability is clearly prioritized amid global monetary challenges.