SINGAPORE: When the Japanese yen weakened sharply in recent days, users of multi-currency e-wallets took the opportunity to exchange Singapore dollars for yen.
YouTrip, a Singapore-based operator, said it saw the highest daily volume of SGD-JPY conversions on Wednesday (Oct 8), when users were able to receive 117.85 yen for every Singapore dollar. This new record surpasses the previous high by 77 per cent, when yen plunged in 2024, chief operating officer Kelvin Lam said.
According to him, the “massive surge” began on Oct 6, with the number of daily conversions jumping 14 times from the day before as the yen weakened to 116.9 per Singapore dollar.
Revolut, which is headquartered in the UK, also said more Singapore users exchanged Singapore dollars for the weaker yen. Compared with Oct 1, the volume of currency exchanges was more than 13 times higher on Oct 8, and the number of users who made conversions spiked close to 9.5 times.
“The most significant spike occurred from Oct 6 onwards with transaction volumes surging more than tenfold compared to the start of the month, reflecting a clear trend among Singaporeans responding to the weakening yen,” said Ms Ashley Thomas, head of strategy and operations at Revolut Singapore.
For most of the past three months, one Singapore dollar could be exchanged for between 114 and 116 yen. As of Friday afternoon, the exchange rate was 117.63 yen per S$1.
The recent weakness in the yen has largely been attributed to the political transition in the country, with the ruling Liberal Democratic Party electing Ms Sanae Takaichi as their new leader.
Ms Takaichi was expected to become prime minister, although that has been thrown into question with Japan’s Komeito party quitting its coalition with the Liberal Democratic Party.
She is expected to favour more aggressive fiscal spending and looser monetary policies, said Mr Oriano Lizza, sales trader at CMC Markets Singapore.
