China Factory Activity Slips in January as Weak Demand Weighs on Growth Outlook 
Putin Envoy Kirill Dmitriev to Visit Miami for Talks With Trump Administration Officials 
Minnesota Judge Rejects Bid to Halt Trump Immigration Enforcement in Minneapolis 
South Korea Exports Surge in January on AI Chip Demand, Marking Fastest Growth in 4.5 Years 
Japan Election Poll Signals Landslide Win for Sanae Takaichi, Raising Fiscal Policy Concerns 
Laura Fernandez Set to Become Costa Rica’s Next President, Promising Sweeping Political Change 
UK Employers Plan Moderate Pay Rises as Inflation Pressures Ease but Persist 
Venezuela Proposes Amnesty Law and Plans to Transform Helicoide Prison 
Pierre Poilievre Retains Conservative Leadership After Election Defeat in Canada 
South Korea Factory Activity Hits 18-Month High as Export Demand Surges 
U.S. and Israeli Military Leaders Hold Pentagon Talks as Tensions With Iran Escalate 
Christian Menefee Wins Texas Special Election, Narrowing GOP House Majority 
EU Recovery Fund Faces Bottlenecks Despite Driving Digital and Green Projects 
Canada’s Trade Deficit Jumps in November as Exports Slide and Firms Diversify Away From U.S. 
Starmer’s China Visit Highlights Western Balancing Act Amid U.S.-China Rivalry 
Gold and Silver Prices Plunge as Trump Taps Kevin Warsh for Fed Chair 
Syria-Kurdish Ceasefire Marks Historic Step Toward National Unity 
The United States and South Korea have reached an agreement to ensure foreign exchange interventions are reserved only for addressing excessive volatility, rather than influencing exchange rates for competitive advantage. The joint statement, released Wednesday, mirrors a similar commitment made last month between Washington and Tokyo, though it does not include a bilateral currency swap line that Seoul had requested.
Both nations emphasized compliance with the IMF Articles of Agreement, pledging to avoid manipulating exchange rates or the international monetary system to gain unfair trade advantages. The agreement highlights that any macroprudential or capital flow measures must not be used to target exchange rates for competitiveness.
Unlike the U.S.-Japan pact, the statement with Seoul did not explicitly stress that exchange rates should remain “market determined.” Instead, South Korea underscored ongoing efforts to maintain currency market stability. The two sides also clarified that government investment vehicles allocate assets abroad for diversification and returns, not to influence currency movements.
Washington has raised concerns in recent reports about South Korea’s National Pension Service (NPS), one of the world’s largest pension funds, and its growing foreign assets. Some market participants fear the NPS could be perceived as a currency intervention tool. South Korea was already on the U.S. Treasury’s monitoring list, with attention drawn to its foreign asset expansion and swap line with the Bank of Korea.
To enhance transparency, Seoul agreed to share details of its foreign exchange intervention operations with Washington on a monthly basis. Public disclosures will remain quarterly with a three-month delay. Additionally, South Korea will continue releasing data on foreign reserves, forward positions, and the currency composition of central bank reserves.
The agreement comes amid stalled trade talks tied to a $350 billion South Korean investment in the U.S. The won has already weakened 3% in the second half of the year, hovering near the key 1,400-per-dollar level, reflecting investor concerns over ongoing trade negotiations.
