Everything feels slightly upside down in the Asian currency markets lately. If you've looked at the japanese yen to korean won exchange rate this week, you probably noticed the numbers jumping around like a caffeinated kangaroo.
Right now, as of January 18, 2026, the rate is hovering around 9.35 KRW for every 1 JPY.
But that number doesn't tell the whole story. Honestly, it’s a bit of a chaotic scene behind the curtain. We’ve got the Bank of Japan (BoJ) finally growing some teeth, the Bank of Korea (BoK) sweating over housing prices, and the U.S. Treasury Secretary, Scott Bessent, basically shouting from the sidelines that the market is getting it all wrong. It's a lot to keep track of.
The weird reality of 100 yen for 900 won
For a long time, travelers and businesses just sort of expected 1,000 won for every 100 yen. It was the "normal." But we haven't been in normal territory for a while.
In the last seven days alone, the yen has seesawed between a low of 9.21 and a high of 9.33 against the won. It’s not just a slow drift; it’s a series of sharp jolts. On January 14, we saw a sudden 0.5% spike in value. In the world of forex, that’s not a nudge—it’s a shove.
What's actually driving this? It's a tug-of-war.
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On one side, you have the Japanese yen, which has been the world's punching bag for years because of zero interest rates. On the other, the South Korean won is struggling because foreign investors are dumping Korean treasury futures—about $3.4 billion worth just recently. When people sell off Korean assets, they sell the won, and that keeps the japanese yen to korean won exchange rate higher than many Korean importers would like.
Interest rates are finally moving (mostly)
Japan did something huge in December. The BoJ raised rates to 0.75%. That might sound like nothing if you're used to American or European rates, but for Japan, it's a 30-year high. Governor Kazuo Ueda is basically trying to take his foot off the accelerator without slamming on the brakes.
Experts like Sam Jochim are pointing out that inflation in Japan has been over 2% for four years now. That’s a massive structural shift. The "cheap yen" era is structurally under threat, which should, in theory, make the yen stronger against the won.
Meanwhile, in Seoul, Bank of Korea Governor Rhee Chang-yong is stuck. He just held the benchmark rate at 2.5% for the fifth time in a row. He’s got a "weak won" problem. The won has been flirting with the 1,470 level against the US dollar, and Rhee is worried that if he cuts rates to help the economy, the won will just collapse further.
"The Korean won is markedly undervalued relative to the country's economic fundamentals," Rhee said recently. He's basically saying the market is being irrational.
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The Bessent Factor and why it matters
You can't talk about the japanese yen to korean won exchange rate without talking about Washington. Scott Bessent, the U.S. Treasury Secretary, has been doing what traders call "jawboning." He’s been publicly stating that the won’s weakness doesn’t make sense given Korea’s strong economy.
For a moment, the market listened. The won surged. But then the "Bessent effect" faded, and we went right back to the yen being relatively stronger.
It’s a messy triangle:
- The US Dollar is still the king, staying strong and pulling both Asian currencies down.
- The Yen is trying to recover because of the BoJ's new hawkishness.
- The Won is trapped between falling exports and investors fleeing to the US market.
Actually, about 75% of the won's recent movements aren't even about Korea. They are about the "strong dollar/weak yen" dynamic and global jitters over places like Iran and Venezuela. Only 25% is "homegrown" Korean drama.
Is it a good time to buy?
If you’re a tourist heading to Osaka from Seoul, you’re paying more won than you were a few weeks ago. If you're a business importing Japanese parts into Korea, your margins are getting squeezed.
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The market sentiment is shifting toward a stronger yen in the long run. The BoJ is expected to hike again, maybe reaching 1.25% or even 1.75% by the end of 2026. If that happens, and the Bank of Korea stays paused at 2.5%, the gap between them narrows.
Narrow gaps usually mean the yen gains ground.
We are also seeing some wild stuff in the stock markets. Even though the currencies are struggling, the Nikkei 225 and the KOSPI have been hitting record highs. It’s a "bad news is good news" situation where a weak currency makes exports look cheaper, boosting stock prices even as the money in your pocket buys less.
What to watch for next
Keep an eye on the psychological "160 yen per dollar" line. If the yen hits that, Japan will likely step in and physically buy yen to prop it up. That would send the japanese yen to korean won exchange rate flying upward.
Also, watch the 2026 "Shunto" wage negotiations in Japan this June. If Japanese workers get a big raise, the BoJ will have all the excuse they need to hike rates again. That’s the real catalyst everyone is waiting for.
Actionable steps for the week ahead
- For Travelers: If you're planning a trip between Japan and Korea, consider locking in your currency now. The volatility suggests the "cheap yen" window is closing, albeit slowly.
- For Investors: Look at the divergence. The yen is starting its tightening cycle while Korea is at the end of its easing cycle. This "policy convergence" is the big trade of 2026.
- Monitor the 9.35 Level: This has become a bit of a pivot point. If we break and stay above 9.40, the yen is likely on a sustained recovery path against the won.
- Watch the U.S. Fed: If the Fed starts cutting rates faster than expected, the pressure on both the won and yen will ease, potentially stabilizing the cross-rate.