Time for a holiday to Japan? Yen hits new low against Singapore dollar

The Japanese yen fell to a record low against the Singapore dollar on Thursday (April 25) at a rate of 114.53 yen per Singdollar.

It then fell further to 115.25 yen per Singdollar at 8am on Friday, according to Google Finance.

Despite this, some money changers AsiaOne spoke to said they have seen little change in the demand for Japanese yen from customers.

An employee of Asmart Exchange in Toa Payoh said that he has not seen any increase in the number of customers purchasing yen or the amount that they exchange of late.

He said that this is because the yen has been falling for a few months now. The Singapore dollar had been strengthening against the yen since the start of 2023.

"The rate was already favourable before, so I think most people have already exchanged earlier," he added.

Similarly, an employee at Arcade Money Changers said he has seen a regular, consistent demand for Japanese yen over the past two months.

With the rise of apps like YouTrip and Instarem, many travellers also prefer to exchange their currency online whenever there are favourable rates.

The yen dropped to a fresh 34-year low on Friday after the Bank of Japan kept interest rates on hold, reported The Financial Times. 

Japan's finance minister Shunichi Suzuki said that they're concerned about the negative effects of the weak yen, Reuters reported. 

"The weak yen has both positive and negative impacts (on the economy)," he told a press conference, adding that he is "more concerned about the negative effects right now".

Suzuki said he could not comment on specific policy measures on foreign exchange, but that authorities were closely watching currency moves and stood ready to take action.

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bhavya.rawat@asiaone.com