Won-Yen Rate Plunges to Two-Year Low Amid Yen Deposit Surge
The won-yen exchange rate has hit its lowest level in two years and one month, falling to 866.35 won per 100 yen.
This marks a sharp decline from 955.63 won on the first of last month, with the Korean won strengthening against the Japanese yen.
The recent growth in yen deposits at South Korea's five major banks, KB Kookmin, Shinhan, Hana, Woori, and NH NongHyup, has coincided with the falling exchange rate. As of September 25th, yen deposit balances totaled ¥1.35 trillion (approximately $8.4 billion), up 29.5% from last month's total.
The Bank of Japan's upcoming interest rate decision in September is seen as a key variable that will determine the future direction of the won-yen exchange rate. A Reuters survey found that 57% of economists expect the Bank of Japan to raise its benchmark rate next month, which could potentially boost the yen.