The American dollar (USD) and the Japanese yen (JPY) are the single most and third most traded currencies respectively. This means that the exchange rate between USD and JPY is one of the most important in the world right now. It also means that the interest in investing in the two currencies on the forex market is huge. In fact, USD and JPY represented over half of the daily market share on the forex market in 2016. Combine that with the euro’s (EUR) market share and you have more than two-thirds of the daily market.
Another reason for the close ties between the dollar and the yen is the trade that goes on between the two nations. Japan is one of the leading economies in Asia and also the closest Asian country located to mainland United States, which creates perfect trading opportunities for both countries.
However, the relationship between the two currencies stretches further than the immediate exchange rate and currency trade. Both the USD and JPY have other smaller currencies pegged to their value, and both nations have foreign economies that rely on them. This means that whatever happens with the dollar to yen exchange rate creates a ripple effect that spreads around the globe.
Because of this, it is important for everyone interested in forex trading to keep a close eye on the USD to JPY exchange rate as it can create investment opportunities in other parts of the world. In other words, this currency pair is an important indicator and tool for the world economy as well as the overall health of the global forex market.
The USD to JPY exchange rate is also important to everyone who travels between the two countries since it is what’s used to determine what products and services cost in either currency. This, of course, applies to both tourists and business people alike.
Convert USD to JPY
In order to keep an eye on the USD and JPY, you need to use a currency converter. When it comes to forex trading, it is always best to use an online currency converter. Not only do online converters offer the current exchange rate but they can also show you how the price of 1 USD in JPY has changed over time.
To make this as easy as possible for our readers we offer one of the best currency converters in the industry right here on TheDailyFX.com. It is a great tool to use for forex trading but also if you’re planning to travel from the United States to Japan or vice versa. In fact, since the currency converter is embedded on the website you can bring it with you wherever you have internet on your smartphone.
To summarize we want to reiterate how important the exchange rate is between the American dollar and Japanese yen. The two currencies possess a global influence on their own, and in combination, their influence is even bigger. In fact, it is so big that their market movements affect the economy of both Europe and Africa, even though they are not directly connected.