In a joint statement after the first trilateral meeting of finance ministers, U.S. Treasury Secretary Janet Yellen acknowledged the concerns of Japanese and South Korean finance ministers about a sharp fall in their exchange rates.

According to a joint statement issued by all parties, Yellen, Japanese Finance Minister Suzuki Shunichi and South Korean Finance Minister Choi Sang-mu discussed Wednesday during the spring annual meetings of the International Monetary Fund (IMF) and the World Bank.Tiger'sRichesRoarOn the issue of exchange rate.

According to the statement, the three parties will "continue to hold close consultations on the development of the foreign exchange market in accordance with our existing G-20 commitments, while acknowledging the serious concerns of Japan and South Korea about the recent sharp depreciation of the yen and South Korean won".

The yen has fallen about 9 per cent against the dollar so far this year, while the South Korean won has fallen about 7 per cent against the dollar, leading Japanese and South Korean officials to step up warnings of currency depreciation. The dollar has strengthened against major currencies this year as the resilience of the US economy and stubborn inflation have undermined the prospect of a Fed rate cut.

Past agreements among G-20 members emphasize the principle of letting markets determine exchange rates while opening the door to action against excessive market volatility.

Ahead of Wednesday's meeting, officials from South Korea and Japan expressed concern that their currencies had fallen to multi-year lows against the dollar this week. In a statement issued after the bilateral meeting, the South Korean government said Mr Choi and Mr Suzuki Shunichi expressed "serious concern" about the recent devaluation of their currencies and warned that appropriate measures would be taken to deal with any sharp fluctuations.