The Korea Herald

지나쌤

Won-dollar volatility near 6-year high in Feb.

By KH디지털2

Published : Feb. 14, 2016 - 13:47

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The daily volatility of the won-dollar exchange rate has hit a near six-year high in February amid global financial instability, market data showed Sunday.

According to the data, the average gap between the daily high and low of the won-dollar exchange rate came to 10.4 won in February, the highest since 12.8 won posted in the second quarter of 2010.

(Yonhap) (Yonhap)
The average difference marks a 0.87 percent intraday fluctuation rate, which compares with 0.58 percent for all of 2015.

The average daily variation, showing the change from the previous session's closing price, came to 8.1 won in the first 12 days of February, also marking the highest level since 10.9 won in the second quarter of 2010.

The recent fluctuation in the won-dollar exchange rate is believed to be linked to China's slowing growth, which may further speed up the outflow of foreign capital from Asian markets prompted by the first U.S. rate hike in nearly a decade in December.

North Korea's recent nuclear test followed by its launch of a satellite believed to be aimed at testing its long-range missile tech have also added to difficulties facing South Korea.

Against such a backdrop, Bank of Korea Gov. Lee Ju-yeol has hinted at possible government intervention.

"The Bank of Korea will take active measures in close cooperation with the government to help stabilize the market should the volatility in the market expand excessively," he said at an emergency meeting held three days after the communist North launched its claimed satellite on Sunday. (Yonhap)