South Korea’s central bank will stay vigilant to closely monitor the cross-border movement of foreign capital and take steps to stabilize the financial markets if needed, its chief said Friday.

Bank of Korea Gov. Kim Choong-soo said that changes in the U.S. monetary policy direction and market reactions could increase volatility in cross-border capital flows and price movements.

“We should wisely cope with changes in global economic conditions related to the Federal Reserve’s reduction of the monetary stimulus program,” the governor said in a meeting with local financiers.

His remarks came as the Korean won climbed sharply to the U.S. dollar and the Japanese yen on Thursday, raising concerns that local exporters could lose ground in overseas markets, which will lead to a drop in their profitability.

The local currency ended at 1,050.30 won to the greenback on Thursday, up 5.1 won from the previous day’s close, marking the highest since July 27, 2011. (Yonhap News)