Korean Yen Buying Spree Fueled by Two-Year Low Won-Yen Rate

Koreans are buying up yen at an increasing rate as the currency's value against the won has plummeted to two-year lows. The won traded at 857.13 per 100 yen on August 1st, down from 937.49 just a year ago and its lowest level since July 2024.

This drop in the won-yen rate has seen both travelers and investors buying yen in anticipation of a rebound. Lee, a 34-year-old office worker planning a trip to Japan this fall, is one such investor, who has been buying yen in small increments every time the currency fell below his earlier purchase price.

The Bank of Korea's rate increase has lifted the won, but the yen faces pressure from Japan's expansionary fiscal stance and the U.S.-Japan interest rate gap. The U.S. and Japanese governments jointly intervened in late July to buy yen, but the currency weakened again past 160 per dollar.