South Korea conducts rare dollar-selling intervention, source says

South Korea's foreign exchange authorities conducted a rare dollar-selling intervention on Thursday, a move that propelled the won to its strongest level in nine months. The intervention occurred alongside Japan's yen-buying, dollar-selling market action in New York, which helped pull the yen from four-decade lows. A market source confirmed the intervention, stating that foreign exchange officials acted overnight. The won strengthened by 2% on Thursday, reaching 1,418.0 per dollar, its highest point since October 20. This marks a significant recovery for the currency, which had hit a 17-year low of 1,561.50 last month. The won is now on track for its biggest monthly gain since March 2009, having risen more than 8% this month. Officials at the finance ministry declined to confirm the intervention. However, currency traders suspect a coordinated effort between South Korea and Japan, given their stated intention to coordinate closely on foreign exchange matters. South Korea's vice finance chief had previously indicated close communication with Japan and other allies on these issues, a sentiment echoed by Japan's top currency diplomat who confirmed close communication with Seoul's foreign exchange officials.

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Foreign exchange officials conducted rare dollar-selling intervention overnight.