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Live and Historical GBP/JPY Rates
This chart shows the value of the British pound (GBP) against the Japanese yen (JPY) - that is how many JPY can purchase one pound. Since they are often involved in currency trades, both GBP and JPY are major currencies. They do not form a major or a commodities pair, however. The pair is nicknamed "Geppie."
The British Pound
The British pound is controlled by the Bank of England, and has been a floating currency since 1971. As one of the oldest currencies still currently traded, GBP is also one of the highest valued currencies. It is a favorite among international currency traders, ranking fourth behind USD, EUR, and JPY. With the stability and strength of GBP, it is clear why the United Kingdom remains resistant to joining other members of the European Union in changing their national currency to the euro. Perhaps if inflation surges become more common, such as at the beginning of 2008, the UK will be more inclined to reconsider the euro.
The Japanese Yen
Japan's yen is just ahead of GBP in popularity on the international trade market at number three. It has been classified as a floating currency since 1973. It is also a popular reserve currency. Why is this? Japan has the second largest economy in the world. Major exports include silver, magnesium, and gold. In addition, the Bank of Japan has worked to keep the interest rate on JPY low since 1990. The result has been that governments and businesses heavily used JPY as a carry currency. Japan is dependent on other countries to supply many of the essentials for modern industry including bauxite, iron ore and copper.
It is shocking to many traders that GBP/JPY are not a major pair, since both currencies are such significant players. But the two countries do not carry on significant trade between each other, and the primary volume for currency trading on the pair is through their common trading partner-the US. Volume was high on JPY when it was one of the few currencies with rock-bottom interest rates, but many countries have now adjusted their rates downward as well. Depending on the stability of GBP, this pair can still be useful for carries.
October 21, 2010 at 12:35 PM • Comment
Wednesday proved to be a day of wild volatility in the foreign exchange market as traders resumed dollar selling behavior. Unexpected news of out China during the overnight session caused a healthy bout of risk appetite to enter the...Read More
October 21, 2010 at 9:33 AM • Comment
USDJPY continued to fall last week, as Yen traders demonstrated increasing confidence in taking the Japanese currency higher in the wake of the statements made the previous week by Japanese finance officials that indicated the Bank of Japan would...Read More
October 20, 2010 at 4:54 PM • Comment
GBPUSD saw relatively volatile trading conditions in last week's sessions, although the Pound Sterling eventually continued to gain ground versus the beleaguered Greenback. Cable started last week off by trading on a soft note on Monday in the wake...Read More
October 20, 2010 at 4:39 PM • Comment
The U.S. Dollar continued its decline against most of the other major currencies last week, with the exceptions of the New Zealand and Canadian Dollar that were each a few pips lower. Nevertheless, the Dollar's fall last week...Read More
October 20, 2010 at 4:33 PM • Comment
The Japanese Yen continued its rally against the Greenback last week to make yet another 15 year high as the Bank of Japan continued holding off on further official intervention after its initial failed attempt to bring down...Read More