South Korea’s currency reserves hit a record high in October in what analysts say is a clear sign that Seoul is determined to prevent a sharp appreciation of the won and build up its fire power to offset the impact of any tapering by the Federal Reserve.
According to data released on Tuesday by the Bank of Korea (BOK), the country’s foreign exchange reserves stood at $343.23 billion at the end of last month, up $6.3 billion from the end of September and jumping by the biggest amount in about two years.
Analysts suspect the rise in reserves reflects central-bank intervention in the currency markets to curb a rise in the won, which has climbed almost 9 percent against the U.S. dollar since late June.
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