Seoul, April 13, 2026 — The Europe Today: Bank of Korea governor nominee Shin Hyun-song has indicated that authorities stand ready to respond if the South Korean won experiences excessive depreciation, underscoring heightened vigilance in foreign exchange markets.
In written remarks submitted to parliament ahead of his confirmation hearing, Shin noted that while the dollar-won exchange rate recently eased slightly to around the 1,480 level, the currency has weakened more sharply compared to others since the escalation of conflict in the Middle East.
“Uncertainty remains high, and we will closely monitor foreign exchange market conditions,” he stated.
On Monday, the won fell as much as 1.1 percent to 1,499.7 per dollar, following the failure of recent U.S.-Iran talks to produce an agreement to end the ongoing conflict, further amplifying market volatility.
Despite the depreciation, Shin said there was no immediate cause for concern regarding the exchange rate level itself, citing stable liquidity conditions. He also refrained from providing a specific outlook for the currency when questioned by lawmakers.
Addressing monetary policy, Shin emphasized that rising inflationary pressures linked to the Middle East conflict would be a key consideration in future policy decisions, according to a report by Yonhap News Agency.
He added that downward pressure on economic growth is being partially offset by strong semiconductor exports and the impact of supplementary fiscal measures.
Last week, the Bank of Korea opted to keep its benchmark interest rate unchanged, while warning of a highly uncertain economic outlook. The central bank also signaled a downgrade in growth projections alongside higher inflation expectations, reflecting the broader impact of global geopolitical tensions.
