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South Korea says misguided to expect won rise for boosting domestic demand

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(Globalpost/GlobalPost)

SEOUL (Reuters) - South Korean finance ministry officials said on Monday it is misguided to believe that Korean foreign exchange authorities are willing to allow the won to appreciate for the sake of boosting domestic demand.

"Expectations in the foreign exchange market for the won's appreciation (for boosting domestic demand) have gone too far," a senior finance ministry official told Reuters, adding that the government would rely on easing regulatory restrictions and policy funding resources to boost investment.

The comments came after the won touched a 28-month high of 1,052.0 against the dollar earlier on Monday. The won was last quoted at 1,053.9 against the U.S. currency at 0057 GMT.

(Reporting by Lee Shin-hyung; Writing by Se Young Lee; Editing by Paul Tait)

http://www.globalpost.com/dispatch/news/thomson-reuters/131209/south-korea-says-misguided-expect-won-rise-boosting-domestic-de