The Japanese Yen Could Be a Safe Choice for Forex Traders

The Japanese Yen is the globe’s third most traded forex currency following U.S dollar and euro, and is probably the most highly traded currency in the Asian region. As a result of its reasonably low-interest premiums, the Yen is amongst the best choice for traders in carry trades after the U.S. dollar.

The Japanese Yen is the currency of Japan. The currency symbol for Yen is ¥ and the currency code is JPY.

Before the 14th century, due to limited resources for producing their own silver and copper coins, Japanese use to import Chinese currency into the country. From 14 to 16th century, two privately minted eastern coins, the Shichusen and Toraisen, started circulation.

In 1871, the Yen introduced to centralize and simplify the various coins being used at the time. The Yen exchange rate lost much of its worth after World struggle II, and they fixed the their exchange rate to the US dollar at 308.

However, the Plaza Accord, which was an agreement between several countries to drop the value of the dollar against other currencies, lowered Japanese currency exchange rate to ¥128 per US$1 in 1988, and prompted a top price of ¥80 per U.S. dollar in 1995.

The government of Japan always tries to keep their exchange rate at the lowest possible level, which suits its economy and imports. The growth in the Yen exchange rate has a negative correlation with its exports. The government also not allows its exchange rate to depreciate in order to maintain a trade balance.

Today’s, Yen to USD exchange rate is 101, with the USD trading 0.11% higher against the JPY from the recent close.