JPY/KRW (JPYKRW)
- 8.6133
- -0.0930-1.07%
JPY/KRW (JPYKRW) News
Markets edge lower as expectations of U.S. interest rate hikes weigh on sentiment.
Outlook for the Week of August 31–September 4: Will the won and yen weaken? Rising expectations of U.S. interest rate hikes are likely to exert downward pressure on currencies such as the won. Meanwhile, weak economic indicators are expected to continue fueling concerns about the economic outlook; notably, the month-on-month growth in July’s retail sales fell significantly short of the previous month’s figure. On the other hand, domestic rate hikes remain a supportive factor for the won. Additionally, should the yen’s depreciation accelerate further, the KRW/JPY exchange rate could rise.
Continued gains driven by the weakening yen and interest rate hikes.
Market Overview for Last Week (August 24–August 28) KRW/JPY High: JPY 11.645 Low: JPY 11.429 Close: JPY 11.632 Week-on-Week Change: +1.4% The won continued its upward trend, driven by the weakening yen and the implementation of interest rate hikes. The depreciation of the yen supported the KRW/JPY exchange rate. Additionally, the interest rate hike served as a supportive factor for the won. On August 27, the Bank of Korea decided to raise the policy interest rate from 2.75% to 3.00%. Meanwhile, market sentiment was buoyed by expectations of industrial support measures in China. On the downside, weak economic indicators and uncertainty surrounding U.S. monetary policy...
South Korean memory chip giant offers substantial shareholder returns; won rally may receive key support
If South Korea's two major memory chipmakers raise funds in the local currency market to support their shareholder return programs, the won may sustain its recent gains.
Stocks rose firmly, supported by double-digit gains in equities and the ongoing depreciation of the yen.
Market Overview for Last Week (August 10–August 14) KRW/JPY High: 11.29 JPY Low: 11.16 JPY Close: 11.25 JPY Week-on-Week Change: +0.36% → Firmly higher The won strengthened, supported by double-digit gains in equities and the ongoing depreciation of the yen. Demand for the won increased as stock market rallies were well received, while the yen's decline further supported the KRW/JPY exchange rate. On the downside, however, upward momentum for the won remained limited. Growing concerns about the outlook for China’s economy heightened fears of slowing export growth, while rising unemployment rates and uncertainty surrounding the Middle East situation also weighed on sentiment.
Markets rebounded, driven by the continued depreciation of the yen and improving economic indicators.
Weekly Overview: August 3–7. Won/JPY High: 11.219 yen, Low: 10.855 yen, Close: 11.21 yen, WoW: 2.54% ↑. The Won rebounded, driven by the weakening yen and improving economic indicators. The yen's depreciation pushed up the Won's exchange rate against the yen, while improved economic data also supported the currency. The S&P Global Manufacturing PMI for July rose to 53.1 from 52.1 in the previous month. On the downside, rising expectations of U.S. interest rate hikes acted as a headwind. Furthermore, uncertainty surrounding the situation in the Middle East also weighed on the currency.
An 'Overlooked' Market Event: Trilateral Intervention by the U.S., Japan, and South Korea—U.S. Treasury Steps In 'Rarely'! Is Bessent Quietly 'Rescuing the Market'?
The U.S. Treasury Department this week unusually intervened in the foreign exchange market, instructing the Federal Reserve Bank of New York to engage Wall Street banks to sell euros and buy yen, coordinating with Japan and South Korea in the largest-scale joint foreign exchange intervention in nearly three decades. Analysts believe the move goes beyond merely stabilizing exchange rates; its core objective is to prevent further weakening of Japanese and South Korean asset markets and to mitigate the risk of financial stress spilling over into the AI supply chain. By intervening in the yen through non-dollar transactions, the United States also aims to shift pressure away from the dollar and avoid imposing additional strain on the dollar system.
Market participants remain cautious, closely watching economic indicators and the yen exchange rate.
Weekly Outlook: August 3–7 — Korean won/yen pair may trade cautiously, with attention on economic indicators and yen movements. This week, the release of July’s S&P Global Manufacturing Purchasing Managers’ Index (PMI) and other data is likely to reinforce a cautious market mood. Additionally, movements in the yen warrant close monitoring; further yen strength could lead to continued declines in KRW/JPY. On the other hand, ongoing improvements in economic indicators may continue to be well received. Moreover, if equity markets rise, demand for the Korean won could increase.
A decline, driven by the rapid appreciation of the yen and a slump in stock prices, among other factors.
Weekly Overview (July 27–31): KRW/JPY high: ¥11.399, low: ¥10.913, closing: ¥10.932, down 2.65% from the previous week. The won declined sharply against the yen amid rapid yen appreciation and falling equity markets. The swift strengthening of the yen weighed heavily on the KRW/JPY exchange rate, while weaker stock prices also dampened demand for the won. Additionally, heightened uncertainty surrounding the Middle East situation exerted downward pressure on the won and other risk-sensitive currencies. On the other hand, expectations of China’s industrial support measures provided some underlying support. Furthermore, June retail sales and industrial production data, among other indicators, were revised upward.
Strong gains, or amid easing economic concerns, etc.
Outlook for the week of July 27–31: The Korean won and Japanese yen may trade on a firm note, supported by easing concerns over the economic outlook. An upside surprise in gross domestic product (GDP) data and other signs of improving sentiment could underpin the won. Additionally, market participants are likely to remain optimistic about China’s potential stimulus measures. On the other hand, further increases in U.S. interest rates could intensify selling pressure on currencies such as the won. Heightened tensions in the Middle East also warrant continued caution.
Continued gains, driven by further yen depreciation and an upward surprise in GDP.
Weekly Overview (July 20–24): The Korean won strengthened against the Japanese yen, reaching a high of 11.222 yen, a low of 10.91 yen, and closing at 11.237 yen—an increase of 2.93% from the previous week. The won’s gains were supported by continued yen depreciation and an upward surprise in GDP data. The Q2 (April–June) GDP growth rate came in at 3.7%, accelerating from the prior quarter’s 3.6% and exceeding market expectations. On the other hand, escalating tensions in the Middle East and rising U.S. interest rates posed downside risks.
Continued gains were driven by positive sentiment toward further yen depreciation and the implementation of interest rate hikes.
Weekly Overview (July 13–17): The Korean won traded between a high of ¥11.003 and a low of ¥10.743 against the Japanese yen, closing at ¥10.917, up 1.2% from the previous week. The won extended gains, supported by ongoing yen depreciation and expectations of an interest rate hike. The weakening yen and the won’s appreciation against the U.S. dollar lifted the won/yen exchange rate. Additionally, diminished expectations of further U.S. rate hikes provided support for the won. Domestically, the implementation of a rate hike spurred buying of the won. On July 16, the Bank of Korea announced a widely anticipated increase in its policy rate to 2.75%. On the other hand,
Is it holding firm, amid the continuation of U.S.-Iran peace talks and expectations of interest-rate hikes?
Outlook for the week of July 13–17: The KRW/JPY exchange rate is expected to remain supported from below, bolstered by the continuation of U.S.–Iran peace talks and expectations of interest rate hikes. Progress in the U.S.–Iran peace negotiations could serve as a supportive factor for the Korean won, while ongoing rate hike expectations will likely continue to underpin the won. On the other hand, if the Japanese yen strengthens, the KRW/JPY rate could decline. Additionally, with China’s gross domestic product (GDP) data scheduled for release during this week, market participants are likely to adopt a more cautious stance.
The rally continued, driven by further yen depreciation and upward revisions to growth forecasts.
Weekly Overview (July 6–10): KRW/JPY opened at a high of ¥10.842, a low of ¥10.509, and closed at ¥10.788, up 2.27% from the previous week. The Korean won continued to strengthen against the yen, supported by ongoing yen weakness and upward revisions to growth forecasts. The depreciation of the yen provided underlying support for the KRW/JPY exchange rate, while the revised-up GDP growth outlook for Q2 (April–June) — raised from 3.0% to 3.1% in the latest survey — also served as a positive catalyst. Additionally, market expectations of an interest rate hike were well received. On the other hand, geopolitical uncertainty surrounding Iran weighed on the index, as did declines in the equity market.
Remained largely flat, supported by improving economic indicators and other positive factors.
Weekly Overview (June 22–26): KRW/JPY opened at a high of ¥10.552, dipped to a low of ¥10.444, and closed at ¥10.539, essentially flat week-over-week (0% change). The market remained largely range-bound, supported by improving economic indicators. Retail sales in May rose 9.0% year-on-year, surpassing April’s 7.2% increase. Additionally, ongoing JPY weakness provided support to the KRW/JPY exchange rate. However, upside momentum for the won was capped, as concerns over equity market declines and persistent worries about potential U.S. interest rate hikes weighed on sentiment.
Markets rebounded, buoyed by an upside surprise in GDP and other positive factors.
Weekly Overview (June 8–12): The Korean won strengthened against the Japanese yen, reaching a high of ¥10.608, a low of ¥10.271, and closing at ¥10.56, up 2.63% from the previous week. The won rebounded on positive sentiment surrounding an upward revision to GDP figures. The preliminary estimate for Q1 (January–March) GDP growth came in at 3.8%, exceeding both the prior quarter’s result and the forecast of 3.6%. Additionally, rising optimism around U.S.-Iran peace negotiations provided support for the won. On the other hand, concerns about a potential U.S. interest rate hike later this year continued to weigh on the currency.
Caution is warranted due to the recent pullback and heightened uncertainty surrounding the Middle East situation.
Weekly Overview (June 1–5): KRW/JPY high: ¥10.63; low: ¥10.25; closing: ¥10.28; week-on-week change: -2.81% ↓ The Korean won weakened against the Japanese yen amid heightened caution over geopolitical uncertainty in the Middle East. Stalled U.S.–Iran peace negotiations contributed to the risk-off sentiment, keeping sellers dominant. Additionally, concerns over accelerating inflation dampened expectations for interest rate cuts. On the other hand, improving economic indicators provided some support, as the May S&P Global Manufacturing Purchasing Managers’ Index (PMI) rose from the previous month’s reading of 5
Market participants remain cautious, with attention focused on the trade balance and related indicators.
Outlook for the Week: June 1–5 — Korean Won/Japanese Yen to Remain Cautious Amid Focus on Trade Balance Data Market sentiment is likely to turn cautious this week as key data, including May’s trade balance, are scheduled for release. On the supportive side, ongoing speculation about a potential extension of the U.S.-Iran ceasefire agreement may continue to provide some underlying support. Additionally, signs of improving economic indicators are expected to be well received. However, the upcoming release of May’s trade balance figures during the week could heighten caution among market participants.
The market continued to decline due to stock price falls and a sense that expectations for the U.S.-China talks had been fully priced in.
Overview for last week, May 11 to May 15: The Korean won against the Japanese yen reached a high of 10.74 yen, a low of 10.51 yen, and closed at 10.6 yen, marking a decline of 1.16% compared to the previous week. The won continued its downward trend amid falling stock prices and a sense of exhaustion following the U.S.-China summit. The downturn in the stock market reduced demand for the won, while profit-taking also expanded due to waning optimism after the U.S.-China leaders' meeting. Additionally, concerns over the prolonged conflict in Iran acted as a negative factor for the won and other currencies. On the other hand, the weakening of the yen provided underlying support for the exchange rate against the yen, and easing U.S.-China tensions also served as a supportive factor.
A weakening tone and the progression of yen appreciation are acting as constraints.
Overview of the previous week, April 27 to May 8: The high for the Korean won against the Japanese yen was 10.839 yen, the low was 10.56 yen, and the closing value was 10.724 yen, representing a decline of 0.52% compared to the previous week. The market remained weak due to the progression of yen appreciation, which weighed on the exchange rate against the yen. Additionally, lingering uncertainty over the situation in the Middle East acted as a negative factor. On the other hand, a substantial rise in the stock market increased demand for the won. Improvements in economic indicators were also received positively. The S&P Global Manufacturing Purchasing Managers' Index (PMI) for April rose from the previous month.
Cautious sentiment prevails amid an opaque outlook for the Middle East situation.
Overview for last week, April 20 - April 24: The high for the Korean won against the Japanese yen was 10.86 yen, the low was 10.71 yen, and the closing rate was 10.78 yen, representing a decrease of 0.28% compared to the previous week. The market sentiment weakened amid caution over uncertain developments in the Middle East. Concerns about the unclear geopolitical situation in the region led to a slight predominance of selling pressure on the won. Additionally, the sharp rise in crude oil prices heightened worries about accelerating inflation. On the other hand, downward pressure on the won remained limited as stronger-than-expected GDP figures were well received. The GDP growth rate for the January-March quarter reached 3.6%, up from 1.6% in the previous period.