Rhee Chang-yong designated as the new Bank of Korea Governor said Tuesday that he backs further rate rises to subdue expectations for stronger inflation even though the move can be “unpopular.”

Key quotes

“Policy interest rate differential between the US, South Korea shouldn't be too big.”

“Interest rate hikes are way to go for now unless they hurt growth.”

Market reaction

USD/KRW spiked to five-day highs of 1,237.04, as the South Korean won (KRW) failed to find any inspiration from these hawkish comments. The US dollar remains firmer on the session, driving the pair northwards. The spot is up 0.14% on the day.