The Japanese yen has reached a 34-year low against the Singapore dollar, currently at 116.02 yen to S$1 as of Apr. 27, 2024. This fall in the yen’s value is due to downward pressure exerted by the large interest rate gap between the U.S. and Japan, making the yen less attractive to investors.
The U.S. Federal Reserve’s decision to hold off on interest rate cuts has also contributed to the yen’s weakening, as the greenback surges in value and the interest rate gap between the U.S. dollar and yen remains large.
While a weak yen is good news for Singaporean tourists and Japanese exporters, it has negative consequences for Japanese locals. With the yen’s purchasing power weakened, Japanese locals face a higher cost of living and are likely to tighten their purse strings.
It remains to be seen whether the Bank of Japan will intervene to prop up the yen, but experts suggest that it is unlikely due to the overall direction of exchange rates determined by the U.S. interest rate outlook.
How much money can i save with the new exchange rate compared with the rates in 2023
If you exchanged 10,000 Singapore dollars in 2023, when the exchange rate was S$1 to 101 yen, compared to the latest rate of S$1 to 116.02 yen, you would get approximately 1,160,200 yen with the new exchange rate.
This is an increase of 150,200 yen compared to the 1,010,000 yen you would have received with the 2023 exchange rate.
Therefore, you would get approximately 15% more yen for your Singapore dollars with the new exchange rate compared to the 2023 rate.
Overall, the weakening yen is a significant economic event that has implications for both Japan and its trading partners, including Singapore.