Live and Historical NZD/JPY Rates
The above chart shows the value of the New Zealand dollar (NZD) against the Japanese yen (JPY) – that is how many yen will purchase one New Zealand dollar. The Japanese yen is a major currency while the New Zealand dollar is not. NZD/JPY does not form a major pair or a commodity pair.
The New Zealand Dollar
The New Zealand dollar is also known as the “kiwi” or the “kiwi dollar” because of the bird that is pictured on some of the coin denominations. The smallest NZD denomination is the ten cent piece. NZD has been a floating currency since 1985. This came after being pegged to USD from its inception in 1967. As the twelfth most internationally traded currency, NZD is very dependent on foreign interest rates and international currency trading for its success-now that it is no longer pegged to USD. New Zealand does have strong trade relationships with Australia and the United States.
The Japanese Yen
The Japanese yen is the third most traded currency in the world. The Bank of Japan has exercised major influence over the value of JPY. From 1990 into the ensuing decades, the Bank of Japan maintained a low interest rate for JPY. This resulted in the popularization of JPY as a carry currency and may have stimulated investment in Japanese assets. Domestic sources of silver, gold, and magnesium are enough to aid in business demands, but Japan remains dependent on foreign countries minerals and other essentials to modern trade. JPY is also a very popular reserve currency.
New Zealand and Japan have a relatively close trading relationship because of their proximity and Japan’s need for some agricultural imports. This means the pair carries some of the highest volume of any of the kiwi-based pairs. During the kiwi’s heavy inflation during the early 2000’s, many investors were also able to profit from the yen’s stability in this pair. Presently, however, this is not a common carry pair. Since both nations trade heavily with the US, the biggest windows of opportunity involve the Australian economy and agriculture prices. As with all pairs involving JPY, pips are based on the hundredth (.01) rather than the ten thousandth place (.0001).