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…
Korean investors are shifting their foreign exchange bets from the U.S. dollar to the Japanese yen due to the won's strengthening against the dollar. The won-dollar exchange rate has dropped from over 1,550 won in the first half of the year to the 1,300-won range. As the won approaches a record low at 850 won per 100 yen, investors anticipate a potential recovery in the yen's value.
This shift in preference has led to a surge in yen deposits at South Korea's top five commercial banks, reaching 1.13 trillion yen as of Tuesday, a 47.8 billion yen increase from the end of August. The trend was previously dormant at 879.6 billion yen in May but has been steadily growing since. Conversely, dollar deposits at these banks have dwindled, falling to $69.15 billion, a $7.19 billion decrease from the end of last month.
The dollar deposits had been on the rise after reaching a yearly low of $58.78 billion in March, but this upward trend ceased this month. On Friday, the Bank of Japan (BOJ) raised its policy rate to 1.25 percent, another rate hike in the series.
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.
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- Investors turn from dollar to yen for FX bets koreatimes.co.kr
