Yen Demand Hits 19-Month High as Currency Continues Downward Slide
The Japanese yen has seen a significant drop in value, driving demand for yen currency exchange to its highest level since December 2024.
According to recent data, from January 1st through the 27th, the five major banks issued 31.5 billion yen worth of yen to customers, equivalent to approximately 281.4 billion won.
This surge in demand is attributed to two main factors: summer vacation travel to Japan and anticipation of a rebound in the yen's value, prompting low-price buying.
The won-yen cross exchange rate hit a 2-year low on January 24th, reaching the 889 won range per 100 yen. Cumulatively, yen exchanges this year have reached 178.3 billion yen, accounting for 68% of last year's total annual exchange volume.
The yen-denominated deposits in the five major banks increased by 69.3 billion yen, equivalent to 619.1 billion won, this month, however, these balances remain lower than their peak at the beginning of the year, when they exceeded 1 trillion yen.