Photo : KBS News
South Korea’s central bank assessed that variables in both the domestic and overseas financial markets could expand in the foreseeable future following Iran’s latest strike on Israel.
At a meeting presided by Bank of Korea(BOK) Senior Deputy Governor Ryoo Sang-dai on Wednesday to check up on the markets, the attendees assessed that preference for safe assets has enhanced around the world amid escalating geopolitical tensions in the region.
Shares and interest rates on government bonds in major economies have dropped since the attack, while the U.S. dollar and Treasury bonds have strengthened.
The senior deputy governor said while the level of Iran’s attack is currently assessed to be “limited,” it would be difficult to rule out the possibility for the rise in global risk aversion sentiment and expansion of financial market variabilities at home and abroad.
The BOK official then pledged to continue to monitor around-the-clock the Middle East situation and various financial and economic impacts on the domestic and overseas markets.