Top economic policymakers of the Republic of Korea and Japan agreed on Tuesday to take “appropriate actions” to curb excessive volatility of their currencies and enhance bilateral and multilateral cooperation on broader economic, financial and social issues, Seoul’s finance ministry said.

Korean news agency Yonhap reported that the consensus was made during the ninth Korea-Japan finance dialogue between South Korea’s Finance Minister Choi Sang-mok and his Japanese counterpart, Shunichi Suzuki, in Seoul.

According to the Korean Ministry of Economy and Finance, the two ministers shared “serious concerns about the recent sharp depreciation of the Korean won and the Japanese yen” and recognised the importance of “remaining vigilant” in policy actions to support economic growth and ensure financial stability.

“They reaffirmed that they continue to take appropriate actions against excess volatility and disorderly movements in exchange rates,” the ministry said in a release.

The joint verbal intervention came as
volatility in the foreign exchange market remains high amid geopolitical instability stemming from the ongoing tensions in the Middle East and elsewhere.

The Korean won and the Japanese yen have weakened markedly against the U.S. dollar in recent months. The Korean currency ended at 1,387.5 won against the U.S. dollar, staying near the closely watched level of 1,400 won, and the Japanese yen has neared the 160 line against the U.S. dollar, a level unseen in decades.

Source: Emirates News Agency