Won-Yen Exchange Rate Enters '800 Won Range' for the First Time in 8 Years... Record-Low 'Enjeo'

[Image source=Yonhap News]

The value of the Japanese yen has plummeted, pushing the won-yen exchange rate into the 800-won range per 100 yen for the first time in eight years.

On the 19th, the won-yen exchange rate was recorded at 897.49 won per 100 yen at around 8:23 a.m. The rate then rose slightly, reaching 902.6 won as of 10 a.m.

This is the first time since June 2015 that the won-yen exchange rate has entered the 800-won range.

While major countries including the United States are maintaining tight monetary policies to combat inflation, Japan is sticking to a loose monetary policy, causing the yen's value to sharply decline.

The Bank of Japan decided at its two-day monetary policy meeting held until the 16th to maintain its large-scale monetary easing measures, keeping short-term interest rates negative and suppressing long-term rates around zero.

Accordingly, local foreign media analyzed that the Bank of Japan judged it necessary to continue the current monetary easing policy for the time being to achieve its price stability target.

Kazuo Ueda, Governor of the Bank of Japan, emphasized, "We will achieve the inflation target (around 2%) by monitoring wage increase trends while continuing monetary easing policies."

Meanwhile, the won-dollar exchange rate started the day higher.

In the Seoul foreign exchange market, the won-dollar exchange rate opened at 1,278.0 won, up 6.1 won from the previous trading day, and rose to the 1,280 won range as of 10 a.m.

Following expectations of the end of the U.S. tightening cycle, the exchange rate closed at 1,271.9 won on the 16th, but rose slightly again amid a strong dollar sentiment driven by hawkish remarks from U.S. Federal Reserve (Fed) officials.