USD/KRW Plunges to 1,513.10 Won, Hits 6-Week Low as Korea-Japan Coordinated FX Move Signals Intervention

According to Yonhapinfomax, USD/KRW fell sharply to 1,513.10 won on July 7 afternoon London session, down 17.20 won from the previous Seoul close of 1,530.30 won. The pair hit its lowest level since June 17, as news of coordinated communication between Korean and Japanese foreign exchange authorities weighed on the dollar.

Japanese Finance Minister Mimura emphasized at a Korea Investment Corporation ceremony in Tokyo that the two countries are maintaining close coordination on recent market developments, including FX trends. The market attributed the sharp decline partly to psychological impact from the Korea-Japan FX cooperation announcement and suspected smoothing operations by authorities during thin trading hours.