Japanese Yen to South Korean Won exchange rates aren't all the same.
The total cost you are charged by your bank or foreign exchange provider consists of a margin from the interbank mid-rate plus fees.
These margins and fees vary significantly for International Money Transfers and Travel Money transactions as shown below.
When determining the best time to make a foreign exchange transaction, in this case the JPY vs KRW, you should pay attention to the recent market trends for both currencies.
Japanese Yen (JPY)
The yen was the star performer in the weeks leading up to this report (May-17), with appreciation driven by a flight to safety following a serious escalation in the US-China trade war. The benchmark yen rate, USD/JPY, was down in the mid-109s, having been as high as 112.4 in late April. Relatively speaking, against their April highs, other yen rates had fallen even more (NZD/JPY was down from 76 to 71.6).
In May, HSBC warned against thinking that yen-supporting safe-haven flows would soon stop, implying that the yen could have more upside potential in the near term. The bank highlighted the “desolation and destruction” (an exaggeration) present in many major economies and currencies. “You can never get too high,” the bank’s chief analyst said.
The South Korean won has been the worst-performing Asian currency in 2019.
In the first five months of the year, the won lost 6 percent of its value against the dollar on its way to a 2-year low of ₩1,190, and lost 4 percent against the euro, with weakness driven by falling exports and an alarming drop in South Korean inflation, both of which drove expectations for an interest rate cut by the Bank of Korea. In addition, the won is one of those currencies being used as a proxy for risk, particularly for risks relating to US-China trade.
The Bank of Korea has warned traders that it will intervene in markets to prop up the won should the rate of currency depreciation accelerate, though interventions will be “mild.”
In late May, Bank of America Merrill Lynch predicted a reversal in won weakness. It said that it was “just a matter of time” before investors again focused on South Korea’s strong fundamentals. The bank expects USD/KRW to fall 7 percent in the second half of the year to ₩1,110.
Why can't I just get the JPY/KRW market rate I see online or in the media?
The mid-rate is the rate you will see quoted online or the news. It is actually just the half-way point (hence mid-rate) between
the last rate at which the JPY / KRW was traded (bought or sold) in the international markets.
All foreign exchange providers charge a fee for providing their service and this fee is usually contained within the exchange rate margin (or difference to the mid-rate).
Some providers such as Transferwise will quote you the mid-rate (or close to) and charge a separate percentage fee.
Getting a good market rate is mainly about timing however the transaction margin
you end up being charged can be considerably reduced by around a few percent (of total amount being exchanged) for
travel money and possibly over 5% to 6% when sending money.
The exact potential savings depends on the currencies being exchanged and the amount you are transferring and if you are willing to shop around.
