Deeply trapped in the depreciation storm, Japan and South Korea have declared a "currency defense battle".

At the end of 2025, the global foreign exchange market saw a revival. The trends of Asian currencies showed significant differentiation, with the Renminbi exchange rate showing a strong rebound trend; while the Japanese Yen and the Korean Won were deeply mired in a "depreciation storm", with their drop against the US dollar far exceeding the rise of the US dollar index during the same period. Faced with unprecedented pressure of currency depreciation, the Japanese and South Korean authorities have recently taken intensive measures, including verbal warnings, policy adjustments, and other various ways to launch a "currency defense war", in an attempt to stabilize the foreign exchange market.