SEOUL, July 31 (Yonhap) -- South Korean and Japanese financial authorities are maintaining close coordination, a senior South Korean official said Friday, amid sharp overnight gains in the Korean won and the Japanese yen against the U.S. dollar.

"(South Korea) is maintaining close coordination with Japan," Moon Ji-sung, deputy minister for international affairs, told Yonhap News Agency over the phone, while declining to confirm whether Seoul and Tokyo's financial authorities had intervened in the foreign exchange market.

Overnight, the Korean won strengthened to 1,418 won against the greenback at around 10:40 p.m. after weakening to as low as 1,435.4 won during the day. It marked the strongest level since the won stood at 1,417.1 against the dollar in October last year.

The Japanese yen also traded at 157.96 yen against the U.S. dollar as of 10:22 p.m. Thursday, compared with previous levels of around 163 yen.

Market watchers speculated that South Korean and Japanese authorities had intervened in the foreign exchange market.

Moon, meanwhile, noted the supply of the greenback to the domestic market is expected to continue in the second half, raising the possibility of further gains by the Korean won.

"While we cannot provide details on the amount exchanged through SK hynix's American depositary receipts, the Korean won (is not appreciating) sharply only due to foreign exchange transactions related to the SK hynix ADRs," Moon said, adding that the supply of the greenback is expected to continue.

colin@yna.co.kr

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