The United States government has urged the South Korean government to refrain from intervening in its local foreign exchange market.

In a report from the U.S. Treasury to Congress regarding economic and FX policies of its main trading countries, it said the South Korean government was continuing to intervene in its foreign exchange market. It also made clear it would continue to place pressure on Seoul to expand the elasticity of the South Korean won.

The report said although South Korea’s foreign exchange market is based on free market policies, its FX authorities were intervening in the won’s movements to curb the currency’s volatility. It pointed out that the South Korean government said it had intervened in September last year to support the won.

The U.S. treasury also said although its efforts to revaluate the renminbi were weak, it does not designate China as a foreign exchange manipulating country.