JPY Exchange Rate
Ahh, Japan: home of YKK, the world’s largest clothing zip manufacturer, and approximately 1500 earthquakes every year.
What influences the USD/JPY exchange rate?
To understand what affects the USD/JPY exchange rate, it’s important to understand a bit about carry trades. Carry trades are used by professional forex traders to capitalise on the interest rate differential between two currencies and potentially profit from higher interest earnings. Japan has had a negative interest rate for the last two decades, so carry trades provide consistent demand for Japanese yen. Therefore, interest rates can play a role in USD/JPY exchange rates.
Both the USD and JPY are considered safe haven currencies, but when the market uncertainty originates in the U.S., the JPY is often the preferred choice. The U.S. dollar is a global reserve currency held by many national banks, but it is subject to swings based on commodity fluctuations, trade policies, and economic outlook.
"The U.S.-Japan Alliance is the cornerstone of U.S. security interests in Asia and is fundamental to regional stability and prosperity."
--U.S. Department of State
Japan is the world’s 3rd largest economy just behind China and the United States.
Japan is the 4th largest export economy in the world with top exports including cars, vehicle parts, and integrated circuits primarily headed for China and the U.S.2
Japan’s birthrate is so low (1.4 births per woman) that the country sells more adult diapers than baby diapers.3 As of 2012, the number of pets was larger than the number of children.4
If you need to make a payment to Japan, use OFX so you don’t get stung by high bank margins and fees. Register today to get access to our low rates and personalized service.
Currency Name: Japanese Yen
Currency Code: JPY
Currency Symbol: ¥
Central Bank: Bank of Japan
Countries Used In: Japan
Major Unit: One Japanese Yen
Minor Unit: Sen (1/100 of a Yen)
Note Denominations: ¥1000, ¥2000, ¥5000, ¥10,000
Coin Denominations: ¥1, ¥5, ¥10, ¥50, ¥100, ¥500
OFX fees not included in the conversion amounts shown above.
*Occasionally, third-party banks may deduct a fee from your transfer before paying your recipient. This fee may vary and OFX receives no portion of it.
CCY Worldwide Delivery Times
Some destinations for this currency include:
*Delivery times are indicative and measured in business days from the time your funds are received by OFX.