US-Japan Intervention Lifts Won Hopes Amid Yen Rebound
A rare US-Japan intervention to support the yen has given the Korean won a renewed tailwind, raising hopes that it could return to the 1,300-won-per-dollar range.
The US Treasury bought yen in coordination with Japan's Finance Ministry, marking the first joint intervention since 1998. This move spilled over into the won, which investors often trade as a proxy for the yen due to their tendency to move together.
Moon Ji-sung, deputy finance minister for international affairs, said that South Korean authorities are maintaining close coordination with the US and Japan, and will continue to cooperate.
Analysts expect the won to potentially break into the 1,300-won range, but warn that a sharp acceleration in the yen's rebound could trigger an unwinding of yen carry trades, leading to broader position cuts across risk assets.