S.Korea may step up dlr injection into swap market

SEOUL, Sept 24 - South Korea's Finance Ministry may use part of its foreign-exchange market fund to inject dollars into the swap market, which is suffering from dollar funding shortages, a ministry official told Reuters on Wednesday.

The official, who declined to be named, did not elaborate.

Intervention in the currency market led directly by the ministry could be much greater in magnitude than the usual intervention conducted through the central bank.

Seoul's dollar/won swap market has recently been suffering from shortages in dollar funding due to increased risk aversion among traders on Wall Street troubles. (Reporting by Lee Shin-hyung, Writing by Yoo Choonsik; Jonathan Hopfner)

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