Korean’s yen savings fall on profit-taking despite BOJ rate hike views

Yen-denominated deposits in South Korea fell in November, dragging down overall foreign-currency savings, as investors took profits from the Japanese unit’s strength against the won on expectations that the Bank of Japan may raise interest rates.The balance of yen savings at South Korean banks slid $430 million to $9.37 billion as of the end of November with the total foreign-currency deposits down $540 million to $98.43 billion, Bank of Korea data showed on Monday.“Yen savings fell as the rise in the yen/won exchange rates prompted non-financial companies and individuals to increase selling spot yen,” the central bank said in a statement.The yen jumped 20.7% against the South Korean won currency in November from the previous month as the Bank of Japan was expected to raise interest rates. The Bank of Korea lowered its policy rates for a second straight meeting in a surprise move last month and left the door open for another cut in the next three months on the other hand.FOREIGN CURRENCY DEPOSITS TO FALL FURTHERDollar-denominated deposits slumped $110 million to $82.63 billion in November, according to the South Korean central bank.Retail investors and non-financial companies dumped spot dollars, which appreciated 0.8% against the won, while dollar savings at non-bank depository institutions surged, the central bank said.Foreign-currency deposits are expected to fall further this month as the dollar and the yen strengthened versus the won after President Yoon Suk Yeol declared martial law on Dec. 3, industry sources said. The parliament voted to impeach him over the decree on Dec. 14.The dollar and the yen have gained 2.9% and 1.4%, respectively, against the won so far this month.By Jin-gyu [email protected] Jongwoo Cheon edited this article.

Stacks of 10,000-yen-bill bundles at Hana Bank headquarters in Seoul (File photo by News1) Yen-denominated deposits in South Korea fell in November, dragging down overall foreign-currency savings, as investors took profits from the Japanese unit’s strength against the won on expectations that the Bank of Japan may raise interest rates. The balance of yen savings at South Korean banks slid $430 million to $9.37 billion as of the end of November with the total foreign-currency deposits down $540 million to $98.

43 billion, Bank of Korea data showed on Monday. “Yen savings fell as the rise in the yen/won exchange rates prompted non-financial companies and individuals to increase selling spot yen,” the central bank said in a statement. The yen jumped 20.

7% against the South Korean won currency in November from the previous month as the Bank of Japan was expected to raise interest rates. The Bank of Korea lowered its policy rates for a second straight meeting in a surprise move last month and left the door open for another cut in the next three months on the other hand. FOREIGN CURRENCY DEPOSITS TO FALL FURTHER Dollar-denominated deposits slumped $110 million to $82.

63 billion in November, according to the South Korean central bank. Retail investors and non-financial companies dumped spot dollars, which appreciated 0.8% against the won, while dollar savings at non-bank depository institutions surged, the central bank said.

Foreign-currency deposits are expected to fall further this month as the dollar and the yen strengthened versus the won after President Yoon Suk Yeol declared martial law on Dec. 3 , industry sources said. The parliament voted to impeach him over the decree on Dec.

14 . The dollar and the yen have gained 2.9% and 1.

4%, respectively, against the won so far this month. Write to Jin-gyu Kang at [email protected] Jongwoo Cheon edited this article.

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