SEOUL: Bank of Korea Governor Rhee Chang-yong on Tuesday said interest rate difference with the United States is only one of many factors affecting the foreign exchange rate, and that recent won weakness was due to dollar strength rather than a rate hold by the central bank.

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Rhee said the Bank of Korea would discuss rate cuts after the inflation rate falls to the 3% level by the end of this year, providing confirmation that it is converging to the central bank’s 2% target.