BER Currency News

BER Home/s

  1. Guides
  2. Currencies (A-Z)
  3. Japanese Yen (JPY)

Japanese Yen (JPY) - Currency Guide

In this currency guide we look at :


  1. JPY General Info
  2. JPY Recent Performance
  3. JPY Market View
  4. JPY News & Updates
  5. JPY Cross Rates

Japanese Yen General Info

The three letter currency code for the Japanese Yen is JPY and the symbol is ¥. It is the domestic currency in Japan.

According to the Bank for International Settlements, in 2016, trading in the Japanese yen (ISO: JPY) contributed to 22% of total foreign exchange market turnover, making the yen the world’s third most traded currency.

Like government bonds and gold, the Japanese yen is considered a safe haven asset – it is the premier safe haven of the currency world. This means that the yen is likely to increase in value against other currencies during periods of economic uncertainty or when global geopolitical risk is elevated, or during bouts of high market volatility.

Since 1995, against the US dollar, the yen’s lowest valuation came in August 1998 when USD/JPY reached 147.67 (¥100 cost a little less than $0.68). Its post-1995 high came in October 2011 when USD/JPY traded at just 75.56 (¥100 cost $1.32).

The Japanese yen is a crucial part of the ‘carry trade’ – a popular strategy among foreign exchange traders in which they borrow in a currency with a low interest rate and use those funds to invest in currencies paying a higher rate. In recent decades, the most popular way to fund the carry trade has been to borrow (sell) yen due to Japan’s consistently low interest rates (since 1996 Japanese rates have averaged less than 0.5%).

JPY Foreign Transfers JPY Travel Money Read our Travel Guide to Japan

Japanese Yen - Recent Performance

In the fourth week of October, one dollar was buying 114 yen. USD/JPY had risen to a 3-month high (yen low) and towards the top of its recent range following Shinzo Abe’s re-election as Japanese Prime Minister. Under “Abenomics,” the Bank of Japan will likely continue with negative interest rates and massive amounts of quantitative easing. For much of the February-October period, USD/JPY traded in a large sideways channel spanning 108 and 114.5-115.

Following Abe’s election victory, EUR/JPY rose above 134 and was within striking distance of September’s high of 134.4 – a breach of which would take the yen to its weakest level against the euro in nearly two years. SGD/JPY also rose to an eighteen-month high of 83.7.

In the six weeks prior to this report, the yen had been the weakest of all G10 currencies, having lost 6% of its value since trading at 107.3 per USD on September 8th. Further to Abe’s re-election, a general reduction in risk aversion had weighed on the currency.

In September, analysts at Citi Bank, ANZ and Societe Generale predicted that the yen would weaken in the fourth quarter. The banks said that Donald Trump’s proposed tax cuts would reignite the US reflation narrative and encourage carry trades generally, which involve borrowing yen at low interest rates and exchanging them for higher-yielding currencies or assets. The banks declined from giving precise yen targets.


JPY/USD Chart and Calculators


Japanese Yen - News & Market Updates


Popular JPY Cross Rates
View Full List (A-Z)
1JPY=

Japanese Yen - Best Rate Calculators

Compare JPY Foreign Transfers Compare JPY Travel Money

Popular Currency Guides

Euro (EUR)

British Pound Sterling (GBP)

US Dollar (USD)

Australian Dollar (AUD)

Full List (A-Z)

BER logo Best Exchange Rates - We make it Easy to Compare Exchange Rates & Fees of Banks and Currency Exchange & Payment Providers


Level 2, AMP Tower, 50 Bridge Street, Sydney, NSW 2000, Australia

Disclaimer | Copyright | Privacy Statement


DISCLAIMER

Best Exchange Rates is an information only service. By browsing on the website, using our comparison tools or FX provider referral service, you are asking Best Exchange Rates to provide you with information about currency exchange products & services from multiple financial institutions.

We will try to show you a range of products & services in response to your request for information. The search results do not include all providers and may not compare all features relevant to you. In giving you product information we are not making any suggestion or recommendation to you about a particular product.

If you decide to conduct foreign exchange you will deal directly with a financial institution, and not with Best Exchange Rates. Rates and product information should be confirmed with the relevant financial institution, see our terms of use for further details.

Best Exchange Rates may receive fees or other benefits in relation to activity on the Best Exchange Rates website. Best Exchange Rates may receive remuneration for vendor referral links. Please note that the opinions of our authors are their own and do not reflect the opinion of Best Exchange Rates and should not be taken as a reference to buy or sell any financial product.

Read our Full Terms of Service



COPYRIGHT

This website and its contents are the copyright of BEST EXCHANGE RATES PTY LTD © 2009-17. All rights reserved.

Any redistribution or reproduction of part or all of the contents in any form is prohibited other than the following. You may print or download contents to a local hard disk for your personal and non-commercial use only. You may copy some extracts only to individual third parties for their personal use, but only if you acknowledge the website as the source of the material.

You may not, except with our express written permission, distribute or commercially exploit the content. You may not transmit it or store it on any other website or other form of electronic retrieval system.

For more details or request distribution right please contacxt us here.