It aims at the speed of a move rather than the level. The authorities release dollars they hold to add supply, or buy them to take supply away. Unlike a full defence of a target rate, the size is often not disclosed, so it tends to be inferred later from changes in reserves.
Watch 1
Predictions & track record (1)
Awaiting gradingThe won came back 115 against the dollar in a month, and not because the dollar weakenedScore on August equity flows and the rate. If foreign investors return to heavy net selling and the rate still holds below 1,450 at month end, count it as the surplus coming through, and if the rate slides back above 1,500 as selling resumes, count it as a lull.