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Photo = Yonhap news |
[Alpha Biz= Paul Lee] On Thursday, the yen strengthened significantly, with the exchange rate of 100 yen to the Korean won reaching 996.33 KRW as of 3:30 PM, marking a sharp 18.56 KRW drop from the previous day’s rate of 977.77 KRW. This is the lowest value since April 27, 2023, when the rate was 1000.71 KRW.
The yen's rise is attributed to the U.S. government's announcement of reciprocal tariffs, which has heightened demand for safe-haven assets like the yen. As concerns about a potential economic slowdown in the U.S. grow, the U.S. dollar weakened, making the yen more attractive as a safe asset.
The reciprocal tariff announcement by U.S. President Donald Trump, imposing a 25% tariff on all products produced in South Korea and imported to the U.S., has contributed to this shift.
Meanwhile, the USD/KRW exchange rate started lower, dropping by 4.4 KRW to 1,471.0 KRW due to the weakening dollar but later reversed its trend and briefly rose to 1,463.3 KRW. It closed slightly lower at 1,467.0 KRW for the week.
The U.S. Dollar Index (DXY), which measures the dollar against six major currencies, fell by nearly 1%, reaching the mid-102 range, its lowest since October 9, 2023.
Despite these movements, the Korean won remained relatively stable, partly due to market caution ahead of the constitutional court ruling on President Yoon Suk-yeol's impeachment, which is set for April 4.
Additionally, the USD/JPY exchange rate has dropped by 2.25 yen, now at 147.02 yen.
알파경제 Paul Lee 특파원(hoondork1977@alphabiz.co.kr)
