Japanese Yen (JPY) is the national currency in Japan. You’ll often see the yen symbol written as the capital letter Y with two dashes, like so: ¥.
Yen is made up of 100 sen coins (or 1000 rin coins.)
In 1871, the Meiji government introduced Yen to update and stabilise the country’s economy. The word “yen” itself loosely translates to “circle.”
Is Yen a strong or weak currency?
Yen is widely used as a reserve currency after the U.S. dollar, the euro and the British pound.
Although it has long been considered one of the world’s strongest currencies, it is less valuable now due to inflation that occurred decades ago.
Some financial analysts refer to the Japanese Yen a “safe haven”, due to its tendency to appreciate in value during uncertain economic conditions.
When the Great Recession occurred in 2009, the Japanese Yen hit a 13-year high of $90.87 against the U.S. dollar.
For this reason and many more, it is not uncommon for forex traders and private foreign investors to diversify their portfolio through buying and holding Yen.
Is it a good idea to invest in Yen?
Although commentators may historically regard Yen as a “safe haven” currency, it is not without its risks.
Yen is just as vulnerable as any other currency to larger economic shifts, political instability, or trade tariffs, as well as a range of other unexpected developments.
Investors interested in buying Yen may choose to purchase Yen ETFs or invest in the Nikkei 225 Stock Average. Some investors prefer to hold Yen in cash.