Bank of Korea flags risk of stronger downward pressure on won

SEOUL, June 26 (Reuters) – South Korea’s central bank said on Wednesday there was a possibility of downward pressure mounting again on the won currency, and vowed to step up monitoring of risk factors and stabilise markets as required.

“It is difficult to completely rule out the possibility of downward pressure strengthening again for the won,” the Bank of Korea said in its bi-annual financial stability report.

Among the major risk factors the bank cited for the currency were a pushback in expectations for U.S. interest rate cuts, geopolitical conflict in the Middle East, and weakness in the Japanese yen and the Chinese yuan currencies.