Korean Won Surges 2% to 9-Month High Amid Suspected Joint FX Intervention

South Korea reportedly sold USD, pushing KRW to 1418.0, a 9-month high. The move coincided with Japanese yen buying, sparking speculation of coordinated intervention between the two nations.

Woofun AI reports that South Korean authorities executed a rare US dollar selling intervention on Thursday, driving the Korean won to a nine-month high. This action aligned with Japan’s simultaneous purchase of yen and sale of dollars in New York markets, which helped lift the yen from a forty-year low. Consequently, the won appreciated by 2% against the dollar to 1418.0 KRW per USD, its strongest level since October 20th of last year.

While a Ministry of Economy and Finance official declined to confirm the intervention, traders suspect joint action given prior statements of close coordination. A South Korean vice minister noted on July 2nd that Seoul maintains close communication with Japan on FX issues, a stance echoed by Japanese officials on July 7th who cited similar market volatility as the reason for their dialogue.