NZDJPY (NZDJPY^)

Pairing – The amount of Japanese yen (JPY) that one can buy for every New Zealand dollar (NZD).

Position

NZD – World’s eleventh most traded currency

JPY - World’s third most traded currency

Important factors

• Economic factors – New Zealand’s dollar will often move in relation to economic, political, and often commercial movements within the country. The yen also relies on economic factors, with interest rates, unemployment numbers, trade, and inflation all having an effect.
• Commodities – Where New Zealand’s trade comes mainly from natural resources, the Japanese economy relies heavy on manufacturing, especially in the automotive industry, so the yen’s value can change depending on the price of commodities related to this industry.
• Reserve – The yen is often used as a reserve currency, but the Bank of Japan’s tendency to intervene can apply downward pressure to the value of the yen.