Following a meeting with US President Joe Biden in New York, South Korean President Yoon Suk-yeol asked Biden to resolve Seoul's concerns over the US inflation reduction act, per Yonhap.

In response, Biden acknowledged S.Korea's concern over the inflation reduction act.

Both leaders agreed to strengthen cooperation to deter North Korean attacks.

They reaffirmed cooperating on stabilizing markets if needed.

Market reaction

USD/KRW catches fresh bid in early Asia and resumes its rally beyond 1,400. The Soiuth Korean won (KRW) hit the lowest since early 2009 against the US dollar, despite jawboning by the government officials and the Bank of Korea (BOK) Governor Rhee Chang-yong.

Rhee said that “we are to closely watch the effect of the fed on the fx market,” adding, “we will determine rates after examining the influence of the fed on FX.”

Meanwhile, S. Korea's Finance Minister Choo Kyung-ho noted that “if necessary, we will take action on FX.”