Korean won hits 18-year high against Japanese yen on booming chip exports
A boom in Korea's semiconductor exports has strengthened the won, pushing it to its highest level against the Japanese yen in 18 years and 9 months, analysts said Wednesday. According to Hana Bank, the won-yen exchange rate fell as low as 844.16 won per 100 yen in intraday trading Wednesday, its lowest level since January 2008, when it stood at 837.58 won. The rate had hovered between 930 and 950…
Korea's semiconductor exports have fueled a surge in the won's value against the Japanese yen, reaching an 18-year peak, according to analysts. The won-yen exchange rate dipped to 844.16 won per 100 yen during Wednesday's trading, marking its lowest point since January 2008 when it stood at 837.58 won. Prior to July, the rate had hovered between 930 and 950 won per 100 yen.
The Japanese yen, on the other hand, is not directly traded in Seoul's foreign exchange market. Banks calculate the won-yen rate indirectly by referencing each currency's exchange rate against the U.S. dollar. The won and yen have experienced an unusual divergence in recent months, diverging from their usual patterns where movements reflect significant overlap in the two countries' export structures.
The primary factor behind the Korean won's strength is attributed to the semiconductor sector. Robust chip exports have boosted the won, leading to this unprecedented exchange rate surge.
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.
This story
This is one outlet's version. Read the fullest account.
