BOK Says "Volatility in Key Price Variables Has Increased in February... Global Risk Factors Also Persist"

Assessment: International Financial Markets Remained Relatively Stable During Lunar New Year Holiday

Bank of Korea Deputy Governor Yoo Sangdae said on the 19th, "In Korea, since February, volatility in major price variables has increased."

Yoo Sangdae, Deputy Governor of the Bank of Korea. Yonhap News

Deputy Governor Yoo made these remarks in the morning at a "Market Conditions Review Meeting," saying, "We will continue to closely monitor how internal and external risk factors unfold and how they affect domestic financial and foreign exchange markets, with a strong sense of vigilance."

At the meeting, participants reviewed conditions in the international financial markets during the Lunar New Year holiday period (February 14 to 18) and assessed their potential impact on domestic financial and foreign exchange markets.

In the international financial markets, major price variables showed slight fluctuations, influenced by key economic indicators such as the U.S. Consumer Price Index (CPI), the release of the Federal Open Market Committee (FOMC) minutes, major corporate earnings announcements, and developments in the U.S.-Iran nuclear negotiations.

The yield on 10-year U.S. Treasury bonds fell by 0.02 percentage points, and the yield on 10-year U.K. government bonds fell by 0.08 percentage points, while the U.S. S&P 500 Index and the Nasdaq Index both rose by 0.7%. The U.S. Dollar Index (DXY), which measures the value of the dollar against the currencies of six major countries, increased by 0.8%. In the New York non-deliverable forward (NDF) market, the value of the Korean won fell by 0.7% against the U.S. dollar, showing a slight weakening.

Deputy Governor Yoo said, "During the Lunar New Year holiday, the international financial markets remained relatively stable without any major events," but added, "Global risk factors such as concerns over major countries' monetary policy stances and fiscal expansion, debates over AI profitability, and geopolitical risks continue to persist."