The success of Japan and South Korea at inserting language voicing concern over their currencies in a joint statement with the U.S. this week underscores the political heat they face from stiff inflation that is being aggravated by weak exchange rates.
WASHINGTON, April 19 -
The U.S. dollar has appreciated broadly this year on prospects for a delay in the U.S. Federal Reserve's shift to interest rate cuts, but the yen and won have weakened far more against the greenback than most other currencies. On the heels of the statement, the yen rebounded as markets braced for the risk of intervention, with some traders flagging the possibility of coordinated action along the lines of the 1985 "Plaza Accord." The won stabilized as well.
Exchange rates, however, were just part of a long list of topics discussed during the finance dialogue, which was created under an agreement worked out at the trilateral summit outside of Washington last August. The weak yen is particularly painful for a country like Japan, which is heavily reliant on imports of fuel and food.Cost-push inflation - or price pressures driven by production cost increases - has also been a political headache in South Korea.
Finance Minister Shunichi Suzuki said on Wednesday he explained Tokyo's readiness to take appropriate action against excessive yen moves in a bilateral meeting with U.S. Treasury Secretary Janet Yellen.
MTGFX MTPIX EREP ANLINS BOJ BOKR CEN ECO FRX IMF INT INTAG MCE NEWS1 PLCY WBNK EASIA KR AMERS US NAMER ASXPAC EMRG CN ASIA JP ECON
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Analysis-Political heat prods Japan, South Korea to team up on weak currenciesAnalysis-Political heat prods Japan, South Korea to team up on weak currencies
Read more »
U.S., Japan and South Korea hold drills in South China SeaThe Associated Press
Read more »
US, Japan and South Korea run military drills in disputed East China SeaWhile President Biden met with the leaders of Japan and the Philippines, the U.S. navy led drills with Japan and South Korea amid tensions between the allies and China and North Korea
Read more »
U.S. Carrier Strike Group Holds Joint Exercise with Japan and South KoreaA U.S. carrier strike group led by the USS Theodore Roosevelt has conducted a two-day joint exercise with its allies Japan and South Korea in the East China Sea. The exercise aims to strengthen solidarity among the partners in response to China's aggressive military actions in the region.
Read more »
Russian Nuclear Bombers Conduct Long-Range Sorties Near Japan and South KoreaTwo Russian nuclear bombers have flown their first long-range sorties of the year in contested waters bordering Japan and South Korea. The Japanese Defense Ministry reported the incident, which occurred just days after a Chinese spy drone flew a similar pattern for the first time.
Read more »
North Korea’s millennial defectors now seek political power in the SouthPark Choong-kwon, once part of North Korea’s elite, is set to enter South Korea’s legislature. He’s part of a new generation of millennial defectors making change in Seoul.
Read more »