South Korea and Japan Address Concerns Over Currency Depreciation

Finance Ministers Address Currency Devaluation Against Dollar

South Korea and Japan are engaged in discussions concerning the recent devaluation of their currencies, the won (KRW) and the yen (JPY), respectively. Both currencies have hit multi-year lows this week against the backdrop of a strengthening dollar, which has sent ripples across global markets.

In a released statement, South Korean Finance Minister Choi Sang-mok and his Japanese counterpart Shunichi Suzuki voiced "serious concerns" regarding the recent currency depreciation. They also indicated readiness to take necessary measures to address any significant volatility. However, there has been no immediate response from Japanese officials.

South Korean Won Hits 1,400 Against Dollar, Yen Plunges to 34-Year Low

On Tuesday, the won fell to 1,400 against the dollar, marking its first dip to this level since late 2022, while the yen hit a fresh 34-year low. Japanese authorities have been issuing verbal warnings consistently in recent months as the yen's trading surpasses levels that have historically prompted intervention to safeguard the currency.

The South Korean won has weakened by about 7% this year as strong data from the US has made the Federal Reserve less likely to cut rates soon. The yen has depreciated even more than this at about 9%, making it the most among the Group of 10 currencies.