The yen-won exchange rate fell below 900 won per 100 yen during trading, triggering increased currency exchange demand from retail customers in South Korea. The rate dropped to 895.84 won per 100 yen on the previous day, marking the first time below 900 won since November 2024. The decline occurred as the won strengthened faster than the yen, with the dollar-won rate falling from the 1,550 won range early this month to the 1,460 won range amid dollar supply dominance and solid domestic fundamentals. The break below the 900 won psychological support level prompted individuals who had delayed exchanges to act on demand for upcoming Japan travel and study abroad needs.
Yen-Won Rate Falls to 895.84 Won Per 100 Yen
According to the Seoul foreign exchange market, the yen-won cross rate fell to 895.84 won per 100 yen during trading on the previous day, dropping below 900 won for approximately the first time in 20 months. The recent yen-won rate decline reflected won strength more than dollar-yen movements.
The dollar-won rate plunged to the 1,460 won range after recording the 1,550 won range early this month, reflecting dollar supply dominance and solid domestic fundamentals. The dollar-won rate fell to 1,465.10 won during trading on the previous day, recording the lowest level in about two months since the May 8 intraday low of 1,457.90 won.
The dollar-yen rate maintained the 163 yen range, the highest level in 40 years, despite multiple verbal interventions from foreign exchange authorities. The won's faster appreciation compared to the yen significantly lowered the yen price in won terms.
Kiwoom Securities Reports 88% Increase in Yen Exchange Requests
Kiwoom Securities reported that yen exchange application cases increased approximately 88% compared to the daily average for the same time period as of the previous day afternoon. Commercial banks and foreign bank dealers reported noticeably increased yen exchange inquiries centered on branches.
A commercial bank dealer stated, "Inquiries related to yen exchange are coming in at branches. While the dollar-won supply continues to be heavy due to dollar supply dominance, yen exchange demand appears to be reviving as won strength continues."
Another foreign bank dealer reported, "Inquiries asking 'shouldn't we exchange now' poured in as the yen-won cross rate decline widened. New actual demand may emerge from those who had been watching."
FAQ
What happened to the yen-won exchange rate on the previous day?
The yen-won exchange rate fell to 895.84 won per 100 yen during trading on the previous day, breaking below 900 won for the first time since November 2024.
Why did retail yen exchange demand increase this week?
Kiwoom Securities data showed yen exchange requests increased approximately 88% compared to the daily average as the rate broke below the 900 won psychological support level, prompting individuals preparing for Japan travel or study abroad to exchange currency while rates remained low.
