Korean won hits 2-year low of 1,000 won per 100 yen

Bundles of the Japanese yen and U.S. dollar banknotes are stacked at Hana Bank in Seoul, March 17. Yonhap

The Korean currency weakened to a two-year low of around 1,000 won per 100 yen on the daytime trading market this week, influenced by the U.S. Trump administration’s reciprocal tariff policy that pushed many investors to seek safe-haven assets, including the Japanese currency.

Also at play are the tariff uncertainties translating into an overall weakness of the U.S. reserve currency, compounded further by lingering concerns over the economic recession in the world’s largest economy.

Regarding the won-yen exchange rate, it was considered virtually a norm that 100 yen be traded at 1,000 won or slightly higher, before the Japanese currency weakened to decades-low against the U.S. dollar in recent years.

As of 3:30 p.m. Thursday, the Korean currency traded at 996.33 won per 100 yen, marking the lowest level since April 27, 2023 of 1001.71 won per 100 yen.

But the won has since gained ground, trading at 981.82 per 100 yen as of 3:30 p.m. Friday.

Concerning the yen-dollar exchange rate, the Japanese currency traded at 147.02 yen per dollar as of 3:30 p.m. Thursday.

The dollar index, a measure of the dollar’s value relative to the currencies of six major countries, has fallen to the mid-102s, down nearly 1 percent from the previous day.

This was a six-month low since Oct. 9, 2024, when it hit 102.44.