A senior South Korean official in charge of foreign exchange policy stated that South Korea and the United States have agreed to maintain close cooperation in addressing the weakness of the Korean won.
In a discussion with Bloomberg News, the Ministry of Economy and Finance's Moon Jisung indicated that foreign exchange market movements were a topic of conversation during weekend meetings with US counterparts in Washington. He stressed that the recent depreciation of the won has been excessive relative to South Korea's economic fundamentals, adding that both sides agreed to work together on the issue of the won's softness.
Moon's trip to Washington, focused on currency policy, was an unusual individual visit conducted outside the standard consultation channels between the two nations' financial authorities. This move underscores Seoul's heightened concern over recent volatility in the won, which fell to its lowest level since 2009 on June 5th.
The Korean won rebounded to a two-week high on Monday, buoyed by improved market risk sentiment following a provisional US-Iran agreement, alongside signs of increasingly close coordination between the US and South Korea.
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