Bank of Korea chief watching Middle East tensions for foreign exchange

Bank of Korea Governor Rhee Chang-yong said tensions in the Middle East appeared to plateau after Iran downplayed Israel's retaliatory drone strikes against it. Rhee's comments are the latest indication of the increasing frustration felt by policymakers in emerging economies as the strengthening dollar pummels currencies across Asia.

Bank of Korea Governor Rhee Chang-yong said tensions in the Middle East appeared to plateau after Iran downplayed Israel's retaliatory drone strikes against it. But geopolitical uncertainty still poses risks for the dollar-won market, as well as inflation, he said. The bank is ready to take steps to stabilize forex markets if needed.

Bank of Korea Governor Rhee Chang-yong said tensions in the Middle East appeared to plateau after Iran downplayed Israel's retaliatory drone strikes against it. But geopolitical uncertainty still poses risks for the dollar-won market, as well as inflation, he said. The bank is ready to take steps to stabilize forex markets if needed.