The Korea Economic Daily said on Wednesday that Washington has demanded Seoul come up with measures for a stronger won during talks.
South Korea’s finance ministry said it was in working-level discussions on exchange rates with the United States, but that no details have been finalised.
The Korean won last traded at 1,374.62 per dollar, compared with 1392.4 at the previous close. South Korea’s deputy finance minister Choi Ji-young met Assistant Secretary for International Finance at the U.S. Treasury, Robert Kaproth, to discuss the dollar/won market on May 5.
The won was the weakest performer among emerging Asian currencies last year, having fallen more than 14% against the dollar. A weaker won boosts the price competitiveness of Korean exports such as cars, and helped Korea report a record trade surplus with the United States last year.