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The Japanese yen hit a new all-time low of 106.10 against the Singapore dollar on Jun. 16, 2023.

The last time the yen depreciated so much was in October 2022, at 105.40 per Singapore dollar.

The yen also reached a 15-year low against the euro at 155.22 per euro on Jun. 16, 2023, reported Reuters.

This comes as the Bank of Japan (BOJ) maintains an ultra-low interest rate policy, forecasting that inflation will slow later this year, while the European Central Bank has raised its interest rates.

More than half of the economists polled by Reuters said they think the Japanese government and central bank will act to stop the decline of the yen if it depreciates to the 145 per U.S. dollar level.

Singapore dollar forecasted to depreciate against yen

According to Business Times, the depreciation of the yen is mostly caused by changes in relative bond yields and monetary policy.

The Bank of Singapore forecasts the Singapore dollar will fall to 92 yen over the next 12 months.

Meanwhile, an expert from UOB said he thinks the Singapore dollar will gradually depreciate to 97.7 yen in the second quarter of 2024.

The stronger yen could make Japanese stocks more appealing to Singapore investors.

Yen and ringgit among worst performing currencies

The ringgit has also continued to weaken against the Singapore dollar.

Year-to-date, the ringgit is only second after the Japanese yen among the worst performing currencies, reported Free Malaysia Today on Jun. 13, 2023.

The ringgit fell 4.5 per cent against the U.S. dollar, while the yen fell by 5.9 per cent.

https://mothership.sg/2023/06/long-queue-money-changer-singapore

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