Yen Intervention Gives Won New Tailwind, Eyes Return to 1,300 Range

A rare instance of US-Japan intervention to support the yen has given the Korean won renewed tailwind, raising hopes that it could strengthen beyond 1,400 won per dollar.

Policymakers confirmed Monday that the US Treasury bought yen in coordination with Japan's Finance Ministry, marking the first joint intervention to support the Japanese currency since 1998.

The move quickly spilled over into the won, which investors often trade as a proxy for the yen because the two currencies tend to move in tandem.