(MENAFN) During a rare gathering, US Treasury Secretary Janet Yellen, alongside Japanese Finance Minister Shunichi Suzuki and South Korean Finance Minister Choi Sang-mook, openly addressed the recent sharp declines in the currencies of Japan and South Korea. This acknowledgment took place within the context of a tripartite meeting held alongside the International Monetary Fund and G20 financial leaders' meetings in Washington this week.
In a joint statement issued after the meeting, the three parties pledged to closely monitor foreign exchange market developments, aligning with existing G20 commitments. Emphasizing their commitment to cooperation, they aimed to promote sustainable economic growth, financial stability, and well-regulated financial markets. Central to their discussions were the significant concerns raised by Japan and South Korea regarding the notable depreciation of the Japanese yen and the Korean won.
This unusual display of concern from the finance ministers occurred against the backdrop of diminishing expectations for a near-term reduction in US interest rates, a factor contributing to the Japanese yen plummeting to its lowest levels in over three decades. Market observers remained vigilant amid speculation about potential interventions by the Japanese central bank to bolster the currency. Some analysts interpreted the language used in the joint statement as a tacit acknowledgment by Washington of its willingness to tolerate such market interventions. This interpretation provided Tokyo and Seoul with a broader scope to defend the yen and the won, should they choose to do so.
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