JPY/USD fell 1.03%, KRW/USD dropped 1.23%, both hitting their intraday lows

JPY/USD fell 1.03%, KRW/USD dropped 1.23%, both hitting their intraday lows

The Japanese yen (JPY) and South Korean won (KRW) both experienced significant depreciation against the US dollar (USD) on July 2, 2025, with JPY/USD falling by 1.03% and KRW/USD dropping by 1.23%, hitting their respective intraday lows. These movements were influenced by a combination of geopolitical tensions and economic data releases.

The USD/JPY exchange rate, as of 5:43:53 PM GMT+1 on July 2, 2025, stood at 146.0600, representing a 1.03% decrease from its previous close of 144.4430 [1]. This decline was driven by a combination of factors, including the uncertainty surrounding the expiration of the White House’s 90-day pause on higher global reciprocal tariffs and the potential impact of the Federal Reserve's monetary policy on the Japanese economy [3].

Similarly, the KRW/USD exchange rate hit its intraday low at 1167.75, a 1.23% drop from its previous close of 1183.00 [3]. The depreciation of the KRW was largely attributed to the ongoing geopolitical tensions and the uncertainty surrounding the US-China trade relationship, which has historically impacted South Korea's currency.

The broader Asian equity markets also reflected this cautious sentiment, with major indices such as the Nikkei 225 and the Hang Seng Index experiencing declines, although the Singapore Straits Times Index managed to rise slightly [3]. This overall market weakness was exacerbated by the conflicting signals regarding the implementation of tariffs from the White House, which added to investor jitters.

The US dollar, on the other hand, rebounded during the Asian session, gaining 0.2% to 97.15, as investors sought the safety of the greenback amidst global uncertainty [3]. This trend was accompanied by a decline in commodity currencies, with the Japanese yen, Australian dollar, and New Zealand dollar all weakening against the USD.

The recent FWD Group's Hong Kong IPO, which saw shares priced at HK$38 with a market cap of HK$48.3 billion, also contributed to the overall cautious market sentiment. The muted valuation of FWD Group, despite robust retail demand, reflected investor caution towards idiosyncratic risks and broader sector-wide challenges in Asia-Pacific insurance valuations [4].

In conclusion, the depreciation of the JPY and KRW against the USD on July 2, 2025, was a result of a combination of geopolitical tensions, economic data releases, and broader market uncertainty. Investors and financial professionals should closely monitor these developments and their potential impact on the global economy.

References:
[1] https://finance.yahoo.com/quote/JPY%3DX/
[2] https://www.tradingview.com/news/reuters.com,2025-07-07:newsml_RSG9926Pa:0-reg-bytes-technology-grp-notice-of-dividend-currency-exchange-rate/
[3] https://www.investing.com/analysis/tariff-uncertainty-weighs-on-equities-as-gold-oil-slip-while-us-dollar-rebounds-200663236
[4] https://www.ainvest.com/news/fwd-group-hong-kong-ipo-barometer-asia-pacific-insurance-valuations-2507/