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 as the won has strengthened against the greenback in recent months. The won-dollar exchange rate has dropped from above 1,550 won in the first half of the year to the 1,300-won range, nearing a record low of 850 won against 100 yen.
This shift in investor sentiment is driven by expectations of a gradual yen recovery, prompting them to buy the Japanese currency preemptively. The amount of yen deposits at Korea's five major commercial banks has risen to 1.13 trillion yen, up 47.8 billion yen from the end of August, while dollar deposits have decreased to $69.15 billion, down $7.19 billion from the end of last month. The Bank of Japan's recent policy rate hike to 1.25 percent has further fueled this trend.
Brief written by urgent.news from The Korea Times's own syndicated 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
