South Korea Denies Intervention in Currency Markets

        South Korean officials Friday denied the U.S. Treasury Department's fresh report on Seoul's suspected intervention in currency markets.
        Song In-chang, director general of the finance ministry's International Finance Bureau, said Friday that South Korea's policy isn't to step into financial markets to manipulate the foreign exchange rates but to "smooth" market volatility for stabilization.
        "It is never true that South Korea has intervened to depreciate the won, " Mr. Song said. "We do not even use the term "intervention" in our policy."
        Mr. Song, however, admitted the Seoul government is still engaged in "smoothing operations' to ease extreme market swings or one-sided movements, which he said is internationally allowed.
        He said that the government will continue to take such actions to stabilize the markets if they turn volatile.
        Officials at the Bank of Korea also reaffirmed the stated government stance.
        The semiannual U.S. Treasury Department report refrained from labeling South Korea a currency manipulator, but it said South Korean authorities appear to have intervened in December and January to keep their currency from appreciating. The report urged Seoul to reduce foreign exchange intervention.
        South Korean policy makers often express worries about the won's steep gains hurting exports.
        Since June 2014 through February, the won has depreciated 9% against the U.S. dollar.
        Write to Kwanwoo Jun at kwanwoo.jun@wsj.com
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        (END) Dow Jones Newswires

        April 09, 2015 23:00 ET (03:00 GMT)

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