Korea is closely watching the foreign exchange market and will take active steps to stabilize the country’s financial market, a senior government official said Wednesday, adding that market stability is important in keeping the economic recovery momentum alive.

“We are keeping a close eye on the foreign currency market of late,” Vice Finance Minister Joo Hyung-hwan said in a meeting with other policymakers in Seoul. “We will actively respond in a way that would stave off herd behavior prodded by one-sided market expectations.”

The meeting was the first of its kind, held to discuss the government’s policy on macroeconomic and financial conditions, since the new economic team led by Finance Minister Choi Kyung-hwan took office. “Also, we will closely monitor the won-yen exchange rates and their impact as the weak yen trend is deepening, while bracing for a possibility that a debate for earlier-than-expected rate hikes could intensify as the U.S. winds down its quantitative easing,” Joo said. (Yonhap)