Investors turn from dollar to yen for FX bets
Korean investors are turning from the U.S. dollar to the Japanese yen as the won has strengthened against the greenback in recent months, with the won-dollar exchange rate falling from above 1,550 won in the first half of the year to the 1,300-won range. With the won falling to the 850-won range against 100 yen, near a record low, expectations of a gradual yen recovery are growing, prompting…
Investors in South Korea are shifting their foreign exchange (FX) bets from the U.S. dollar to the Japanese yen, as the won has gained strength against the greenback in recent months. The won-dollar exchange rate has plummeted from above 1,550 won in the first half of the year to the 1,300-won range, and is now nearing a record low of 850 won per 100 yen. This has led to growing expectations of a gradual yen recovery, prompting investors to buy the Japanese currency preemptively.
At the end of August, yen deposits at South Korea's five major commercial banks - KB Kookmin, Shinhan, Hana, Woori, and NH NongHyup - totaled 1.13 trillion yen, which is a 47.8 billion yen increase from the end of August. This represents a significant boost compared to the 879.6 billion yen deposited in May, indicating a steady rise in the last few months.
Conversely, dollar deposits in the same five banks have declined. The banks held $69.15 billion in dollar deposits, which is a $7.19 billion decrease from the end of last month. This downward trend follows a steady increase in dollar deposits after the banks hit a yearly low of $58.78 billion in March. The Bank of Japan (BOJ) recently raised its policy rate to 1.25 percent on Friday, further fueling the yen's upward momentum.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 1 other outlet
- Investors turn from dollar to yen for FX bets koreatimes.co.kr
