Financial Stability Situation press briefing held
![The Kospi, Kosdaq and won-dollar exchange rate are displayed on a board at Hana Bank's dealing room in Jung-gu, Seoul, on Tuesday. [Yonhap]](https://wimg.heraldcorp.com/news/cms/2026/09/22/rcv.YNA.20260922.PYH2026092203100001300_P1.jpg)
The Bank of Korea said Tuesday that the recent strengthening of the won does not amount to excessive one-sided movement in the currency market.
Kim Shin-young, head of the central bank's foreign exchange analysis division, said at a Financial Stability Situation press briefing Tuesday morning that "the pace of the won-dollar exchange rate decline is indeed fast," adding that the rate had been on a rising trend earlier this year due to large-scale foreign equity sell-offs before reversing in the second half as economic fundamentals reasserted themselves.
"Excessive volatility has a negative impact on the economy, so we are closely monitoring any one-sided moves," Kim added. "We do not view the recent won strength as excessive one-sided movement."
Deputy Governor Jang Jeong-su said the central bank needs to pay close attention to the speed of exchange rate moves in either direction. "Our principle is to closely watch any one-sided movement in the exchange rate and respond decisively," he said.
The monthly average won-dollar rate — based on weekly closing prices — peaked at 1,528 won in June before falling consecutively to 1,488.9 won in July and 1,404.4 won in August, driven by rising demand from exporters to convert foreign earnings into won. In September, the rate climbed for seven consecutive trading sessions from Sept. 9 (1,336.1 won) through Sept. 18, as tensions between the United States and Iran reignited and the US raised its benchmark interest rate, before falling back to 1,381 won on Monday. As of around 9:45 a.m. Tuesday, the won-dollar rate had fallen as far as 1,359.6 won before edging up slightly to trade around the 1,360-won level.
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