Amid the won's continued appreciation, developments surrounding the yen's depreciation and growing demand to buy yen have been reported. Examples involving individuals who incurred losses by buying additional yen, as well as analysis that the Bank of Japan's monetary policy and Japan's export trends are affecting foreign exchange rates, have been presented.
The rate of 971 won per ¥100 on 7 July fell to 917 won within a month, and one individual moved more than ¥9 million in funds through positions against the yen, including yen purchases. As the yen's depreciation continued, the individual bought an additional ¥100,000 worth of yen at a time, but is currently facing a loss of approximately 750,000 won.
In July, the Bank of Japan raised its policy rate, changing it from 1% to 1.25%, but the yen rose to around 883 won before falling again to around 850 won. Experts have pointed to the possibility that the yen's depreciation trend will continue for the time being.
The dollar/won rate changed from around 1,450 won at the beginning of the year to the 1,330-won range currently. The situation is described as one in which the won has appreciated more than the yen has depreciated, causing the won/yen rate to fall.
Japan's exports and fiscal policy, together with expectations of further rate increases, have been cited as factors behind the yen's depreciation, while demand to exchange into yen has emerged in the form of increased yen deposit balances at the 5 largest banks.