China temporarily raised reserve requirements for six large commercial banks, a surprise move aimed at draining cash from the economy.

Thailand, also on edge about a rapidly rising currency that has alarmed exporters, said it may impose a tax on foreigners' bond purchases.

With interest rates in the developed world at record lows, investors have poured money into higher-yielding emerging market assets, driving up local currencies in the process.

Governments, afraid that rising exchange rates will hurt exports and stunt economic growth, have tried to limit currency appreciation, sparking fears of a "race to the bottom" that may trigger trade tariffs and a sharp decline in global growth.

"If each country insists on its own interest during the recovery phase, it will bring about trade protectionism and will cause the world economy very big problems," RoK President Lee Myung-bak told foreign journalists during a lunch meeting at his residence.

World finance leaders made no headway towards resolving currency disputes at a weekend International Monetary Fund meeting, and Lee urged an agreement before his country hosts a G20 summit next month.