South Korean finance minister views dollar-won near 1,400 as new normal, Yonhap reports

SEOUL (Reuters) – South Korea’s finance minister said the won’s current level near 1,400 per dollar should be regarded as a “new normal”, the Yonhap news agency reported on Wednesday, although the finance ministry later denied the minister made the remark.

Choi Sang-mok, who is also the deputy prime minister for economic affairs, said “the current 1,400 level should be seen as different from the 1,400 in the past,” according to the report.

Choi added that South Korea’s economic conditions did not make it possible to raise interest rates to defend the local currency, in a meeting with reporters accompanying him during a trip to New York, Yonhap reported.

The won has weakened nearly 5% against the dollar this month and earlier on Wednesday hit its lowest level since late July at 1,385.1. It last touched the psychological threshold of 1,400 in mid-April.

Soon after Yonhap’s report, the finance ministry said in a text message: “Deputy Prime Minister Choi Sang-mok did not say that the FX rate of 1,400 won per dollar was the new normal at a meeting with correspondents in New York’s Manhattan on the 22nd.”

About half a dozen outlets reported the comments, but some, including Yonhap, later removed their articles without explanation.