Lee Chang-yong 'no exchange rate target' Powell's 'interest rate hike' overlapped the won sharply

After Bloomberg published an article warning of further erosion of Asian assets, Bank of Korea Governor Chang-yong Lee said in an interview with Bloomberg TV that “there is no exchange rate target,” and the won depreciated significantly.
"Asia assets are leaning towards hawkish at the Jackson Hole Symposium following the Fed, and investors are seeking refuge," Bloomberg said. It warns of the long-term risks of funds being raised and the further erosion of the rebound seen in risk assets after June.”
In an interview with Bloomberg TV at the Jackson Hole Symposium on the 27th, Governor Lee Chang-yong said, "The Bank of Korea does not set a specific exchange rate level as a target, and will set the exchange rate according to market supply and demand." "If Korea's inflation rate is 5 % or higher, the BOK will also give priority to price stability as in the recent remarks of Chairman Powell.”
Regarding the interest rate reversal, Governor Lee said on the same day that “it is undesirable for the policy rate range between Korea and the US to widen too wide.
“The dollar has risen more than 10% this year, the yen has fallen 16%, and Asian currencies have already weakened significantly due to the Fed’s aggressive rate hike,” Bloomberg said. It has no choice but to decline further,” he predicted on the 28th.
"The dollar will remain strong and we can see outflows in emerging markets," Grace Tam, chief investment advisor for BNP Paribas in Hong Kong, told Bloomberg.
"The strong dollar is likely to cause money to flow out of emerging markets," said Manish Bhagava, fund manager at Straits Securities in Singapore. Therefore, the central bank’s austerity measures will continue.”
Economists predicted that inflation in the US and Canada would peak at 9.1% and 8.1%, respectively, recorded in June, while inflation in the Eurozone would record a record 9.0% in September and then fall. However, it is expected that UK inflation will rise to 11.9% in December of this year and then decline. Bloomberg reported that the US will raise the key interest rate to 3.75% by March next year, and the European Central Bank and the Bank of England (BOE) will each drop 1.75%. , expected to rise to 4%.
Korea's annual interest rate hike was 2.75% due to the rate hike in August, and the won/dollar exchange rate started at 1,342.5 won per dollar on the 29th, up 11.2 won.