South Korea¡¯s government pledged to curb excessive volatility as the currency approached its lowest level?since 2009 and bond yields climbed.

¡°Authorities are closely monitoring FX (foreign exchange) market developments with a high degree of vigilance to prevent anxiety from spreading, and will take prompt, necessary measures in case of excessive market moves,¡± Finance Minister Koo Yun Cheol said Thursday.

The government will also closely monitor the bond market and respond promptly to excessive volatility through close communication with market participants, Koo said in an emailed statement, after a regular meeting with officials including the Bank of Korea governor.

South Korea joins authorities in Indonesia and the Philippines in stepping up measures to defend currencies as elevated oil prices hurt the region¡¯s importers. The won fell on Wednesday and was a whisker away from 1,536.95 per dollar, the lowest level since 2009.

¡°The authorities are doing what they can, but given that the won is being driven by external factors, it¡¯s likely difficult to control,¡± said So Jaeyong, chief economist at Shinhan Bank in Seoul. ¡°I do think 1,530 is clearly excessive, but there aren¡¯t any obvious drivers at the moment that would push the won higher.¡±

The yield on the nation¡¯s three-year bond was up six basis points to 3.83%. Korean markets were closed Wednesday due to local elections.

In Thursday¡¯s statement, the government noted that volatility in the foreign-exchange market has increased despite the current-account surplus reaching record levels, due to factors such as the conflict in the Middle East and continued foreign selling of Korean equities.

The sharp rally in the domestic stock market has led foreign investors to re-balance their portfolios and take profits, which has further amplified volatility in the FX market, according to the government.

Authorities last issued verbal intervention on May 22 via a rare joint statement, where they described moves in the won as excessive relative to economic fundamentals.

The warning also follows a series of government efforts to reign in bond yields from rising too fast. Korea reduced bond issuance in June, while intensifying monitoring of the bond market through daily phone calls and a private messaging group.