The Japanese yen has fallen to a historic low against the Singapore dollar, underscoring a prolonged period of weakness for Japan’s currency and reshaping the financial landscape for travellers, investors and businesses across the region. The sharp movement has drawn attention in Singapore, where the strong Singapore dollar continues to reflect the city-state’s stable monetary policy and economic resilience.
On 13 January 2026, the exchange rate hit a record level, with S$1 buying approximately ¥123.53. This marked the strongest point ever recorded for the Singapore dollar against the yen. The latest milestone surpassed previous lows seen just months earlier, when the yen weakened to around ¥120.6 per Singapore dollar in November 2025. Currency watchers say the pace and scale of the decline have been unusually pronounced.
The impact is particularly striking when viewed over a longer time horizon. Around five years ago, one Singapore dollar was worth roughly ¥77.2. In practical terms, this means the yen has lost a significant portion of its value against the SGD in a relatively short span. Such a shift highlights how diverging economic conditions and monetary policies can dramatically alter foreign exchange rates over time.
A Prolonged Period Of Yen Weakness
Analysts attribute the yen’s continued slide to a combination of economic and monetary factors. Japan has maintained an ultra-loose monetary stance for years in an effort to stimulate growth and combat deflation, while countries such as Singapore have focused on maintaining currency strength through prudent macroeconomic management. This policy divergence has placed sustained downward pressure on the yen.
The Japanese currency has also approached multi-year lows against other major currencies, including the US dollar and euro, reinforcing the view that the issue is not isolated to the SGD-JPY pair. Slower domestic growth, an ageing population and concerns over long-term fiscal sustainability have further weighed on investor confidence in the yen.
For Singapore-based businesses with exposure to Japan, the weak yen presents a mixed picture. Importers may benefit from lower costs when purchasing Japanese goods, while exporters dealing with Japanese partners could face margin pressures. Currency risk management and hedging strategies are therefore becoming increasingly important in cross-border trade and investment planning.
What It Means For Singapore Consumers And Investors
For Singaporeans, the record-low yen has immediate implications for travel, overseas spending and investment opportunities. A stronger Singapore dollar translates into greater purchasing power in Japan, making accommodation, dining and shopping more affordable for tourists. This has renewed interest in Japan as a travel destination, particularly amid rising costs elsewhere.
Investors, meanwhile, are closely monitoring the situation for potential opportunities and risks. While Japanese assets may appear cheaper in SGD terms, currency volatility remains a key consideration. Financial advisers caution that exchange rate movements can quickly reverse, especially if there are shifts in global interest rates or changes in Japan’s monetary policy.
As global markets remain sensitive to economic signals and central bank decisions, the yen’s all-time low against the Singapore dollar serves as a reminder of how interconnected currencies, inflation trends and monetary policy have become. Whether the yen stabilises or continues its downward trajectory will be closely watched by policymakers, investors and consumers alike in the months ahead.