British Pound / Japanese Yen

GBP/JPY is the cross rate showing how many Japanese yen one British pound is worth. It is one of the pairs known in the market for their volatility and is also called 'Guppy' among investors. The pound is managed by the Bank of England and the yen by the Bank of Japan. Because the pair does not involve the US dollar, its value is derived from the two currencies' rates against the dollar.

The pair's moves combine two different factors: the pound is sensitive to UK interest rates, inflation and political developments, while the yen, because of Japan's long period of low interest rates and its safe-haven character, can move inversely to global risk perception. The interest rate gap between the two countries can make the pound a preferred currency in carry trades; when risk appetite drops suddenly, the unwinding of these positions can pull the pair down quickly.

Decisions by the two central banks and statements by Japanese officials about the currency market are closely watched. On Lzzo.com, the GBP/JPY value is a cross reference rate calculated from market exchange rates; it is not a bank buy/sell price or a current interbank quote.