Finance ministers from Japan and South Korea pledge to counter excessive swings in the yen and won, citing serious concern over recent sharp depreciation.

TOKYO/SEOUL: Japan and South Korea have jointly expressed serious concern over the recent sharp depreciation of their currencies.

Following their annual meeting in Tokyo, Finance Ministers Satsuki Katayama and Koo Yun-cheol stated they are prepared to act against excessive foreign-exchange volatility.

The yen and won have weakened significantly amid rising geopolitical tensions and a stronger US dollar.

Mounting tensions from the US-Israeli war on Iran have driven safe-haven demand for the dollar, battering currencies of oil-importing nations.

The ministers reaffirmed they will closely monitor foreign exchange markets.

They pledged to continue taking appropriate actions against excessive volatility and disorderly movements.

The yen recently touched a 20-month low, nearing the 160.00 per dollar level that could trigger Japanese intervention.

The South Korean won breached the psychological barrier of 1,500 per dollar this month for the first time since March 2009.

Katayama told a press conference that both nations shared the view significant volatility had emerged in financial markets.

“The Japanese government is fully prepared to respond at any time,” she stated.

She emphasised this readiness considered the impact currency moves may have on people’s livelihoods amid surging oil prices.

Katayama regularly states Japan’s readiness to act regarding yen movements.

Some policymakers privately argue that intervening to prop up the yen now could prove futile.

They believe the flood of dollar demand will only intensify if the war in the Middle East persists.

 The Sun Malaysia