S. Korea FinMin: Global inflation, monetary policy normalization talks may increase fx market uncertainties

South Korean Vice Finance Minister Lee Eog-won said in a statement on Tuesday, “uncertainties in international financial markets may increase due to global inflation conditions and monetary policy normalization talks in major economies.”

"In this regard, (the ministry) will review normalizing some of the foreign exchange rules that have been loosened as part of COVID-19 responses, including the FX derivatives rules," Lee added.

These comments come as the FX liquidity situation in the country has improved.

Market reaction

USD/KRW keeps its range around 1,131 on the above comments, reversing an uptick from daily highs of two-day highs of 1,133.01 reached early Asia.