File picture on a meeting of South Korean bank officials. [Photo by Yoo Dae-gil]
"We are not so worried as our foreign exchange authorities are carrying out their task in a balanced manner," Vice Finance Minister Choi Sang-mok told reporters, adding Seoul was explaining its position to Washington in various ways.
Separately, the finance ministry promised to maintain closer communication with Washington on macroeconomic policies after denying news reports that US Treasury Secretary Jack Lew had expressed concern over South Korea's forex policies to Finance Minister Yoo Il-ho.
There have been suspicions among currency dealers that authorities have stepped in the foreign exchange market since late last year.
But South Korean financial officials have ruled out any direct government intervention, citing their basic stance that authorities will take action via "market smoothing" measures if they see extreme price action while leaving the general flow in line with global market movements.
An amendment to a related US bill now awaits signing by President Barack Obama. Unlike the past practice of making verbal warnings, the new bill enables Washington to punish currency manipulators by restricting them in the American public procurement market estimated at $400 billion a year.
Experts in Seoul believe China is the main target of the new bill.
Aju News Lim Chang-won = cwlim34@ajunews.com