The Japanese yen fell below 5 on Christmas Eve, and exchange shops reported that citizens exchanging yen increased by 100% year-on-year
As the Christmas holiday approaches, the exchange rate of the Japanese yen has fallen below 5, and Hong Kong residents are rushing to exchange yen in preparation for travel to Japan. The person in charge of the currency exchange shop mentioned that the trading volume of yen increased significantly over the weekend, doubling compared to the same period last year. Wing Lung Bank's exchange rate is attractive, with the USD to JPY reaching 157.78. Experts predict that the yen will still face downward pressure in the short term, and the USD to JPY may touch the 158 level. The direction of the Bank of Japan's policy will be influenced by next year's "Shunto" negotiations
As the Christmas holiday approaches, the Japanese yen has fallen below the 5-yen level, prompting Hong Kong residents to "sing flat Yen" in preparation for travel to Japan. The manager of a currency exchange shop told this newspaper that the exchange of yen over the weekend was very active, with Saturday's trading volume reaching 1.3 billion yen, an increase of over 80% compared to regular days, and double the trading volume from the eve of last year's Christmas. Besides currency exchange shops, the exchange rate offered by Wing Lung Bank is also attractive, with yesterday's rate for yen at 0.04985. Last week, the dollar was seen trading at 157.78 yen, and experts pointed out that there are no sustained signals for rising yen interest rates, suggesting that the dollar to yen exchange rate may touch the 158 level.
The manager of the currency exchange shop also indicated that benefiting from the overall economic recovery this year, citizens have more funds available compared to last year, with trading volume on the eve of Christmas increasing by about double compared to the same period last year, reaching 900 million yen yesterday, which is also higher than regular levels.
Dollar to Yen Expected to Reach 158 Level
Wang Liangxiang, Managing Director of Zhenxiang Consulting, stated that there is a policy consensus between the Bank of Japan and the government, which is to maintain a relatively loose monetary environment while raising interest rates. The "spring struggle" over the past two years has shown that Japanese wages have risen but still have not kept pace with price increases. He pointed out that the future policy direction of the Bank of Japan will also depend on the results of next year's "spring struggle" negotiations.
Li Ruofan, Global Market Strategist at DBS Hong Kong's Treasury and Markets Department, predicts that in the short term, the yen will still face downward pressure, and the dollar to yen exchange rate is expected to approach the previous low of 158 yen per dollar
