Demand for Japanese Yen Surges Amid Weak Yen, Reaching 19-Month High

[Economy 365]

As the value of the Japanese yen has dropped significantly, demand for yen currency exchange for trips to Japan and currency investment has hit a 19-month high.

From the beginning of this month through the 27th, the amount of yen issued to customers by the five major banks reached 31.5 billion yen, equivalent to approximately 281.4 billion won.

This is an increase of 7.8 billion yen from the previous month, marking the highest level since December 2024.

This surge is driven by summer vacation travel demand to Japan, as well as an influx of low-price buying demand from people anticipating a rebound in the yen's value.

The won-yen cross exchange rate dropped to the 889 won range per 100 yen on the 24th, marking the lowest level in two years.

The cumulative amount of yen exchanges this year reached 178.3 billion yen, accounting for 68% of last year's total annual exchange volume.

As money also flocked to yen-denominated deposits, the yen deposit balances of the five major banks increased by 69.3 billion yen—equivalent to 619.1 billion won—this month.

However, due to expectations that the weak yen trend will continue, the deposit balances remain lower than at the beginning of the year, when they exceeded 1 trillion yen.

*This article was produced with AI audio.
※ Please note: This article was translated by AI and may contain errors.