South Korea warns it may curb derivatives as won rallies

South Korea warned on Thursday it was ready to take action, such as lowering the ceilings on banks’ foreign exchange derivatives positions as early as next week, to stem the won’s strength that it said was ”excessive”.

The won wiped out early gains against the dollar after Deputy Finance Minister Choi Jong-ku made the strongest set of warnings in months at an unscheduled media briefing.

“We are close to the stage in which specific steps need to be taken,” Choi told the briefing, adding there were “excessive expectations” for the won’s strengthening.

via Business feed http://www.scmp.com/business/money/markets-investing/article/1088161/south-korea-warns-it-may-curb-derivatives-won