South Korea sees won strengthening as Lee flags FX limits

South Korean President Lee has indicated efforts to stabilize the foreign exchange market while acknowledging that domestic policy tools are insufficient to fully cope with currency pressures. He emphasized that if tools were available, they would have already been deployed, signaling a cautious stance against expectations of aggressive interventions. Lee pointed out that recent movements in the Korean won have broadly tracked the Japanese yen, reflecting resilience as it has weakened less than the yen. Importantly, he stated that authorities expect the won to strengthen towards the 1,400 level soon, aiming to reassure markets post elevated volatility. This communication underscores a preference for orderly adjustment in currency movements, relying on verbal guidance rather than immediate stabilizing measures. With a clear reference to potential strengthening towards 1,400, it acts as a soft signal to mitigate one-sided speculative positioning.