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South Korean won depreciation deepens, yen rate hits 800

Updated 1 time since CLSTR started tracking revisions of this situation.

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2026-07-26 04:45 UTC → 2026-07-29 07:46 UTC · added removed

South Korean won depreciation in 2026 deepens, yen rate hits 800

In late July 2026 the South Korean won continued to lose value its rapid slide against the U.S. dollar. On July 24 the won traded above 1,540 per dollar, its strongest level since the March 2009 financial‑crisis peak, while the won‑yen rate fell into the 800‑won reaching 1,540 per 100‑yen band for the first time in more than a year. The move was attributed to robust Q2 growth, foreign inflows into Korean assets, dollar on July 24 and a weaker yen. Two days later, slipping to an intraday low of 1,555 on July 26, the weakest level in over 17 years. The Bank for International Settlements reported that the won’s recorded a real effective exchange rate (REER) dropped to of 82.99, the lowest since March 2009, indicating a loss of signalling reduced price competitiveness. competitiveness and prompting heavy foreign selling of Korean equities. The currency weakened further in intraday trading, touching 1,555 won per dollar—the weakest level in over 17 years—and weakening extended to the monthly average won‑yen market. On July 27 the won‑yen rate fell to 1,527.95, around 800 won per 100 yen, the lowest point since February 1998. Heavy foreign selling of Korean equities 1986, and strong domestic demand remained in that band for dollars were cited as key drivers, and five consecutive trading days. Five major South Korean banks sold yen worth about 315 billion yen (≈2.8 trillion won), the slide contributed largest monthly outflow since December 2024, while yen‑denominated deposits rose sharply. The yen’s value against the dollar rose to roughly 163‑164 yen per dollar, a sharp decline 40‑year low, raising concerns in Japan about inflation and import costs. These developments underscore an accelerating depreciation of the Korea Composite Stock Price Index. Together, won, broader forex‑market stress, and the snapshots show a rapid acceleration emergence of the won’s depreciation within a short span, moving from a high‑2000s level inflationary risks tied to a historic low both the weak won and triggering broader market stress. the strong yen.

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  1. 2026-07-29 07:46 UTC South Korean won depreciation deepens, yen rate hits 800
  2. 2026-07-26 04:45 UTC South Korean won depreciation in 2026

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