South Korea’s Deputy Finance Minister Choi Ji-young met with Robert Kaproth, the U.S. Treasury’s Assistant Secretary for International Finance, on May 5 to discuss the dollar/won currency market, a South Korean official confirmed on Wednesday.
The meeting took place during the 58th Asian Development Bank (ADB) Annual Meeting in Milan, Italy. It followed an April agreement between Seoul and Washington to work on a trade package. This package aims to remove U.S. tariffs before the current pause on reciprocal tariffs ends in July.
On April 25, the U.S. and South Korea agreed to develop a trade deal that would cover tariffs, economic security, investment, and foreign exchange policies.
On Wednesday, the South Korean won strengthened by 1.4% against the U.S. dollar, reaching 1,398.40 won per dollar by 8:30 GMT. This rise pushed the won above the significant psychological level of 1,400 per dollar.
Last year, the won was the weakest currency among emerging Asian markets, dropping over 14% against the dollar.
A local forex dealer, who requested anonymity due to the sensitive nature of the issue, said the talks between the U.S. and South Korea on foreign exchange might explain the won’s recent gains. However, they cautioned that more monitoring is needed to understand the full market impact.
In related developments, U.S. Trade Representative Jamieson Greer is set to meet with South Korea’s Trade Minister Ahn Duk-geun on Friday during the APEC meeting in South Korea. Officials said the discussions will cover a wide range of trade issues.
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