BOK: "Volatility Increased in February... We Will Step Up Monitoring of Financial and FX Markets"

The Bank of Korea (BOK) stated, "As volatility in major domestic price variables has increased since February, we will continue to closely monitor how internal and external risk factors unfold and how they affect domestic financial and foreign exchange markets, with a heightened sense of vigilance."
According to the BOK on the 19th, Deputy Governor Ryoo Sangdai chaired a "Market Conditions Review Meeting" that day to examine movements in the international financial markets during the Lunar New Year holiday (February 14–18) and their potential impact on domestic markets. The meeting was attended by the heads of the Monetary Policy Department, International Department, Financial Markets Department, Public Relations, and Investment Operations Department.
Global financial markets were generally stable over the holiday period. The release of the U.S. Consumer Price Index (CPI), the publication of the Federal Open Market Committee (FOMC) minutes, major corporate earnings announcements, and developments in U.S.-Iran nuclear negotiations all influenced markets, but key price variables moved within a limited range.
The 10-year U.S. Treasury yield fell by 2 basis points, while government bond yields in major countries such as Germany (-4 basis points) and the United Kingdom (-8 basis points) also declined overall. In the New York stock market, the S&P 500 and NASDAQ Composite Index rose 0.7% each, and the EURO STOXX 50 gained 1.5%. The U.S. dollar strengthened by 0.8% against major currencies.
Indicators related to Korea were also relatively stable. The Korean won weakened 0.7% against the U.S. dollar on a non-deliverable forward (NDF) basis, while the credit default swap (CDS) premium stood at 22.5 basis points as of the 18th, remaining at a low level.
Deputy Governor Ryoo said, "The international financial markets remained relatively stable over the Lunar New Year holiday without any major events," but added, "Global risk factors such as concerns over major countries' monetary policy stances and fiscal expansion, debates over the profitability of artificial intelligence (AI), and geopolitical risks continue to persist." He emphasized that the BOK will strengthen its monitoring of domestic financial and foreign exchange markets.
imne@fnnews.com Hong Yeji Reporter