As the yen continues to appreciate, its perceived value in South Korea remains around ¥875 per ¥100, while the won is also strengthening. USD/JPY at times fell into the ¥152 range, and market attention is focused on the impact of Japanese monetary policy developments and the situation in the Middle East.
Despite the yen’s appreciation, the won-yen rate has remained around ¥875 per ¥100. The won has also strengthened, limiting the rise in the won-yen rate.
On the 8th, USD/JPY fell to ¥152.89 in the Tokyo market, down about ¥11 over the past month and a half, leaving it around a seven-month low. Expectations for an additional Bank of Japan rate hike are rising in the background.
Markets are assessing developments in monetary policy in Japan and the United States and changes in the situation in the Middle East, while concerns over an unwinding of the yen carry trade remain. While MUFG and others are analyzing the possibility of a further decline, many market participants believe that a sharp unwinding remains limited for now.
The won’s strength is being driven by robust exports and selling pressure on the dollar, with the dollar-won rate falling into the 1,334-won range. The National Pension Service’s foreign-exchange hedging activity is also attracting attention, but has not yet been enough to reverse the current trend.