US Dollar / Japanese Yen

USD/JPY is the pair showing how many Japanese yen one US dollar is worth. When the pair rises, the dollar has strengthened against the yen; when it falls, the yen has gained value. The yen is managed by the Bank of Japan and the dollar by the US Federal Reserve (Fed).

The interest rate differential is especially decisive for this pair. Because Japan kept interest rates very low for many years, and for a period even negative, the yen was used as the funding currency in 'carry trade' transactions, in which investors borrow in a low-interest currency to invest in higher-yielding assets. Policy changes at the Bank of Japan and US Treasury yields can therefore move the pair quickly.

The yen is also known as a safe-haven currency sought during periods of uncertainty; it can tend to gain value when global risk appetite declines. Japan's Ministry of Finance may intervene in the foreign exchange market during periods of what it considers excessive volatility. The USD/JPY value shown on Lzzo.com is a market reference sourced from Yahoo Finance; it is not a bank buy/sell rate.