NZD/JPY – Live and Historical Rates
The NZD is not a major currency, while the JPY is one. The pair that these two – economically well-linked – currencies make, is not a major though, nor is it a commodity pair. The chart above illustrates the amount of JPY one will have to spend to purchase a NZD.
The New Zealand Dollar – also known as the kiwi – was introduced in 1967, marking the split with the pound (beforehand, New Zealand had used the New Zealand Pound). Pegged to the USD, the NZD became irrevocably tied to the US economy. While the currency has been floating since 1985, the country’s economic ties with the US still make it heavily dependent on the USD. Other countries whose economies influence the value of the NZD are Japan and Australia. The economy of New Zealand is based on agricultural products.
One of the majors, the Japanese Yen is the third most traded currency in the world and a popular reserve currency as well. Since the early 1990s, the Bank of Japan – the financial authority in control of the currency – has pushed for low interest rates on the yen. This policy has turned the JPY into a popular carry currency. Carry trading opportunities still emerge from time to time on the JPY to this day. While Japan produces plenty of silver, gold and magnesium, commodity-wise it relies heavily on trading partners such as Australia.
New Zealand fits the role of a major trading partner for Japan to a T, on account of the latter’s needs for agricultural imports. During the early 2000s, the NZD underwent an accelerated inflationary process, which – given the stability of the JPY – was exploited by some investors targeting the pair. Currently, the NZD/JPY pair is not a carry pair.