South Korean Won Drops to 800 per 100 Yen as Yen Exchange Volume Hits 19‑Month High
The won‑yen exchange rate fell to around 800 won per 100 yen and stayed in that range for five consecutive trading days, the lowest level since 1986. During the period 1‑27 May, the five major South Korean banks (KB Kookmin, Shinhan, Hana, Woori and NH Agricultural) sold yen worth 315 billion yen (about 2.8 trillion won), the largest monthly total since December 2024. Cumulative yen‑exchange activity for 2024 reached 1,783 billion yen, roughly 68 % of last year’s total.
The yen’s value against the U.S. dollar climbed to about 163‑164 yen per dollar, also a 40‑year low, prompting concerns in Japan that the weak yen combined with rising oil prices will push up import costs and inflation. In South Korea, the rate decline was driven by strong summer travel demand to Japan and speculative “forex‑tech” buying of yen, while banks reported a rise of about 693 billion yen in yen‑denominated deposits for the month.
Analysts note that the Bank of Japan may keep its policy rate at 1 % at its upcoming meeting, but markets are already pricing in the possibility of a 0.25 percentage‑point hike if yen‑driven inflation pressures persist.
Entities: Bank of Japan · Japanese yen · South Korean banks · South Korean won · U.S. dollar
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [● 2 SOURCES] The yen reached about 163‑164 yen per U.S. dollar, the weakest level since 1986. (articles a8d1b9b3-4c05-44f1-8777-da3991ea0bd0, 3b92012e-be61-4a34-b2be-17971d9dc839)
- [● 2 SOURCES] South Korean banks sold yen worth 315 billion yen (≈2.8 trillion won) between 1‑27 May, the largest monthly total since December 2024. (articles ee45ec58-d82b-42c6-9b48-0e7cb11334c3, 3b92012e-be61-4a34-b2be-17971d9dc839)
- [○ 1 SOURCE] Higher oil prices combined with the weak yen increased Japan’s import costs, raising inflation concerns. (article a8d1b9b3-4c05-44f1-8777-da3991ea0bd0)
- [● 2 SOURCES] Cumulative yen‑exchange volume for 2024 reached 1,783 billion yen, about 68 % of last year's total of 2,637 billion yen. (articles ee45ec58-d82b-42c6-9b48-0e7cb11334c3, 3b92012e-be61-4a34-b2be-17971d9dc839)
- [● 2 SOURCES] The won–yen exchange rate fell to around 800 won per 100 yen and remained at that level for five consecutive trading days. (articles ee45ec58-d82b-42c6-9b48-0e7cb11334c3, 3b92012e-be61-4a34-b2be-17971d9dc839)
- [● 2 SOURCES] The decline in the won–yen rate was driven by increased Japanese travel demand and speculative ‘forex‑tech’ buying of yen. (articles ee45ec58-d82b-42c6-9b48-0e7cb11334c3, 3b92012e-be61-4a34-b2be-17971d9dc839)
- [○ 1 SOURCE] The Bank of Japan’s upcoming policy meeting may keep rates at 1 % but markets anticipate a possible 0.25‑percentage‑point hike if yen‑driven inflation persists. (article a8d1b9b3-4c05-44f1-8777-da3991ea0bd0)
- [○ 1 SOURCE] Yen‑denominated deposits at the five banks rose by about 693 billion yen (≈619 billion won) in the month, reaching a total of 9,781 billion yen. (article 3b92012e-be61-4a34-b2be-17971d9dc839)