Exchange Rate Calculator

The exchange rate between the South Korean Won (KRW) and the Japanese Yen (JPY) has experienced notable fluctuations over the past few months, reflecting the dynamic economic landscapes of both countries. Understanding these movements is crucial for businesses, investors, and policymakers engaged in the East Asian markets.

Recent Exchange Rate Trends

Over the past six months, the KRW/JPY exchange rate has exhibited significant volatility. According to data from Exchange-Rates.org, the highest rate during this period was 0.1114 JPY per KRW on November 14, 2024, while the lowest was 0.1009 JPY per KRW on March 10, 2025. The average exchange rate over these six months stood at 0.1075 JPY per KRW, indicating a depreciation of the Korean Won against the Japanese Yen by approximately 5.62% during this timeframe. (exchange-rates.org)

Factors Influencing the Exchange Rate

Several factors have contributed to the observed fluctuations in the KRW/JPY exchange rate:

1. Monetary Policy Decisions: In March 2024, the Bank of Japan (BOJ) was widely anticipated to end its negative-interest-rate policy. This expectation led to an increase in the correlation between the Korean Won and the Japanese Yen, reaching the highest level in over nine months. Such policy shifts can significantly impact investor sentiment and currency valuations. (bloomberg.com)

2. Profit-Taking Activities: As the KRW/JPY exchange rate rose, investors engaged in profit-taking by selling Japanese Yen holdings. This behavior resulted in a decrease of approximately $430 million in Yen deposits, as individuals and non-financial corporations capitalized on favorable exchange rates. (bloomingbit.io)

3. Economic Indicators: Key economic indicators, such as GDP growth, inflation rates, and trade balances in both South Korea and Japan, have also played roles in influencing the exchange rate. For instance, differences in economic recovery trajectories post-pandemic and varying inflationary pressures can lead to shifts in currency valuations.

Technical Analysis

Technical indicators provide insights into potential future movements of the KRW/JPY exchange rate. As of December 28, 2024, the Relative Strength Index (RSI) stood at 45.465, suggesting a neutral market sentiment. The Moving Average Convergence Divergence (MACD) indicator was at 0, indicating a potential sell signal. These technical metrics suggest a cautious outlook, with potential for further depreciation of the Korean Won against the Japanese Yen. (investing.com)

Historical Context

To provide a broader perspective, examining the KRW/JPY exchange rate over the past few years reveals a trend of gradual appreciation of the Korean Won against the Japanese Yen. In 2020, the average exchange rate was 0.09038 JPY per KRW, which increased to 0.09595 in 2021, and further to 0.1076 in 2023. This upward trend reflects various economic factors, including trade dynamics, monetary policies, and global economic conditions. (exchange-rates.org, exchange-rates.org, exchange-rates.org)

Implications for Stakeholders

The fluctuations in the KRW/JPY exchange rate have several implications:

• Exporters and Importers: Businesses engaged in trade between South Korea and Japan need to account for exchange rate volatility in their pricing and contract strategies to mitigate potential losses.

• Investors: Currency fluctuations can impact the returns on investments denominated in either currency. Investors should consider hedging strategies to protect against adverse movements.

• Policymakers: Understanding the factors driving exchange rate changes is essential for formulating effective monetary and fiscal policies that promote economic stability.

Conclusion

The KRW/JPY exchange rate has experienced notable fluctuations over the past few months, influenced by monetary policy decisions, investor behaviors, and economic indicators. Stakeholders should remain vigilant and consider both technical analyses and broader economic contexts when making decisions related to these currencies.