The depreciation of the depreciation is rapid, and the Korean won will the yen follow the dust?

[Global Times special reporter Zhang Jing and Song Yi in South Korea] Since 2022, the decline in the yen has increased, and the yen's exchange rate to the US dollar has reached the lowest point in the 24 years. It is still difficult to climb out at this low valley. Yuan Houchen. On August 22, the exchange rate of the US dollar to the US dollar set the lowest record in nearly 13 years. According to the Yonhap News Agency on the 24th, the Central Bank's Financial Monetary Commission will announce that it will increase the benchmark interest rate by 0.25 percentage points on the 25th. It is reported that the main cause of further interest rate hikes at the South Korean Bank is the pressure of inflation, but the Fed also has no choice for the Bank of Korea. Under the circumstances of the South Korean price index rising by 6%last month, the U.S. benchmark interest rate was higher than that of South Korea's benchmark interest rates. If the interest rate difference continued to expand, South Korea's price and the exchange rate of the Korean won may be worsened. There are also opinions that the Bank of South Korea ’s central bank has increased the benchmark interest rate for two consecutive months, which may pour cold water for South Korea’ s economic recovery.

The 1340 mark lost the US dollar exchange rate on the US dollar exchange rate, hitting a new low in 13 years. Picture source: Visual China

The "Korean National News" reports that the market believes that due to the situation of South Korea's import and export, the future Korean won is likely to further depreciate. Data released by the South Korean Customs Department show that from August 1st to 20th, South Korean trade revenue and expenditure appeared 10.217 billion US dollars in deficit, which may have a deficit for 5 consecutive months. Recently, international oil prices have declined, and international trade revenue and expenditure still have room for improvement. However, considering that natural gas supply difficulties and the slowdown in the economic slowdown of major trade targets, the improvement will be very limited.

Since the beginning of this year, the continuous depreciation of the yen has become one of the focus of Japanese society. On the 23rd, the exchanges of the US dollar in the foreign exchange market fell to the US dollar, once reached 1 US dollar against 137 yen. However, the Bank of Japan is not prepared to take measures to intervene in the depreciation of the yen. The president of the Japanese Bank of Japan Kuroda Kuroda emphasized in a recent interview that the judgment of financial policy is not based on the trend of the yen, but based on prices.

The devaluation of the yen has caused Japanese companies to benefit or damage has always been the focus of Japanese public opinion. A senior executive of Japan's Suzuki Motor said in an interview with the Asahi Shimbun that the depreciation of the yen was indeed beneficial to exports, but it also led to rising prices of imported raw materials, so it was negative in income. Mori Gaohong, deputy chairman of the Japanese Railway, said, "The manufacturing industry is looking forward to the depreciation of the yen, but now the price of resource prices has risen, the logistics network is chaotic, the production and exports are difficult to grow, and the negative impact of the yen depreciation is greater." Japan's Empire Data Banking The survey shows that about 60 % of the interviewed companies expressed their performance due to the rapid depreciation of the yen. Among more than 10,000 companies interviewed, 61%said that the devaluation of the yen brought a "negative impact". From the perspective of the industry, beverages, food, feed manufacturing and other industries indicate that the proportion of "negative impacts" is high. Imperial Data Bank analysis said that the depreciation of the yen has not significantly appeared, but instead pushed the import price.

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