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SEOUL - South Korea's central bank and finance ministry warned Monday they will take "strong measures" if necessary to stabilise the foreign exchange market.
The won has fallen more than 10 percent against the dollar so far this year, making imports more expensive and putting upward pressure on inflation.
"We will take a close look at supply and demand and foreign exchange movements in the local currency market, and if imbalance is deemed too excessive, we will take strong necessary measures," the ministry and the Bank of Korea said in a joint statement.
South Korea, Asia's fourth largest economy, imports virtually all its oil needs and has been hit especially hard by soaring crude prices.
Annual inflation rose to 5.5 percent in June, close to a 10-year high.
On Sunday the government announced a series of energy-saving measures, including banning official vehicles from the road every other day. - AFP/vm
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