The won-yen rate remains in the 840-won range per ¥100, while expectations of an additional Bank of Japan rate hike have emerged as a factor influencing the yen's direction. Trading in the won-dollar and won-yen pairs in the Seoul market was reported to have been volatile on the 23rd.
On the 23rd, the won-dollar trading rate in the Seoul foreign exchange market rose to 1,324.6 won, up 0.4 won from the weekly closing rate. The won-yen trading reference rate was 844.47 won per ¥100.
The possibility of an additional Bank of Japan rate hike was viewed as a key variable in the yen market. It was reported that higher interest rates in Japan could narrow interest-rate differentials with other countries and support the yen's value. Remarks by senior Japanese officials were also cited as having fueled expectations of further monetary tightening.
In a report published on the 22nd, Kiwoom Securities said the dollar-yen rate was ¥158.14, down 0.02% from the previous day. The dollar-yen rate represents the amount of yen needed to purchase one dollar, meaning that a decline in the figure indicates an increase in the yen's value.
Foreign-exchange movements are influenced by the relative movements of the won and yen against the dollar. Even if the yen's value changes as the won strengthens, actual returns when the won is converted into yen are also affected by factors such as separate fees. As the interests of travelers and investors intersect, the perceived burden from fluctuations in exchange rates also changes.