Japan, Korea, US Agree Forex Cooperation As Yen, Won Dive

Finance chiefs from the United States, Japan and South Korea have agreed to “consult closely” on foreign exchange markets, amid worrying declines of the yen and won.

The agreement came in the leaders first trilateral meeting on Wednesday amid receding expectations of a US interest rate cut anytime soon pushed the yen to 34-year lows, keeping markets on alert on the chance of yen-buying intervention by Japanese authorities.

“We will continue to cooperate to promote sustainable economic growth, financial stability, as well as orderly and well-functioning financial markets,” according to a joint statement released after the meeting.

“We will also continue to consult closely on foreign exchange market developments in line with our existing G20 commitments, while acknowledging serious concerns of Japan and the Republic of Korea about the recent sharp depreciation of the Japanese yen and the Korean won,” it said.

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The trilateral gathering, attended by US Treasury Secretary Janet Yellen, Japanese Finance Minister Shunichi Suzuki and South Korean Finance Minister Choi Sang-mok, was held on the sidelines of the International Monetary Fund and G20 finance leaders’ meetings this week in Washington.

In the joint statement, the finance leaders condemned North Korea’s exports of ballistic missiles to Russia, and Russia’s procurement of them.

“We affirm our commitment to utilise and coordinate our respective sanctions tools to impose costs on Russia for its war against Ukraine” and target North Korea’s weapons program, the statement said.

The finance leaders also emphasised the importance of collaboration to “overcome supply chain vulnerabilities and the possible harm to our economies from non-market economic practices of other countries, including economic coercion and overcapacity in key sectors,” according to the statement.

Reuters with additional editing by Sean O’Meara

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Sean O'Meara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.