President Lee: "Exchange rate likely to fall to around 1,400 within a month or two"

[The Financial News] President Lee Jae Myung on the 21st addressed the recent surge in the exchange rate, explaining, "According to the responsible authorities involved, they predict that in about one or two months it will fall to around 1,400."
Regarding the government’s response to the exchange rate, President Lee remarked, "If there were any special measures to take, we would already have implemented them," adding, "The government is carrying out many effective policy measures within its reach." He went on, "Of course, as you all know, the market is always determined by supply and demand."
President Lee pointed to a gap between real-economy indicators and the exchange rate, saying, "We have achieved a record-high export performance of 700 billion dollars, our trade surplus is continuing, and growth is recovering, yet the exchange rate is approaching the level seen last year under the Yoon Suk Yeol administration." He added that "some are calling this level a new normal."
He particularly noted that the US Dollar–South Korean Won exchange rate is partly moving in tandem with the yen exchange rate. President Lee said, "The won’s exchange rate is linked in some respects to the yen exchange rate," and added, "Compared with Japan, our currency has been less depreciated." He continued, "If we were to align exactly with Japan’s current situation, the rate would be around 1,600 won, so compared with the yen–dollar linkage, we are still holding up relatively well."
While mentioning the possibility of a decline in the exchange rate, he also made clear the limits of policy room. President Lee said, "There are various unfavorable aspects to this, but also advantages for export companies. In any case, this is not a phenomenon unique to the Republic of Korea (South Korea), so it is difficult to fully restore the previous level through Korean policies alone."
He emphasized, "We will continue to identify feasible tools and work to ensure that the exchange rate can stabilize."
west@fnnews.com Seong Seok-woo Reporter