Japan is one of the most beautiful places, with scenic landscapes and rich culture. From hot springs to sushi, and anime, Japan has it all. Its currency, the Japanese Yen (JPY), is the third most traded currency in the world and is also the third biggest reserve currency. Japan also plays an important role in the global economy. If you plan to travel to Japan, you must know its currency and the INR to JPY exchange rate.
What is ‘Yen’?
The legal tender of Japan is the Japanese Yen, or simply Yen. Its currency code is JPY, and its symbol ¥ similar to the Chinese Yuan. The Yen comes in coins and banknotes; the most common denominations are ¥1,000, ¥5,000, and ¥10,000. Coin denominations include 1 yen, 5 yen, 10 yen, 50 yen, 100 yen, and 500 yen.
Before Yen was introduced in 1871, the Japanese used clan notes and paper money issued by the feudal lords in the 16th century. Different places used different currencies. It was in the late 1800s that the country wanted to adopt a modernisation policy for its economic growth and designed Yen based on the European decimal monetary system. The policy aimed at having one single currency for the entire country.
The Yen was pegged to the Dollar under the Bretton Woods System at a set rate of 1 USD = ¥ 360. But after the policy was scrapped, the value of the Yen appreciated post the floating rate was adopted, followed by deflation and the oil crisis. Currently, 1 USD = ¥ 129 and is one of the most traded currencies in Asia.
What is the formula to convert INR to Yen?
To convert INR to Yen, you will have to divide the value in rupees with the exchange rate of JPY to INR. For example, if you want to convert Rs 1 lakh into JPY, you will have to divide this with the current exchange rate of JPY to INR, which is 1 JPY equals 0.63 INR.
JPY = Rs 1,00,000/0.63
JPY = 1,58,730
This means if you want to buy Japanese Yen using Rs 1 lakh, you will get ¥ 1.58 lakh at the current exchange rate.
While calculating the value of one currency in terms of another is easy, you can always use a currency converter such as Jupiter currency converter to do the same work within seconds. You must enter the value in Rupees, select JPY from the drop-down, and the calculator immediately gives you the value in Yen in no time.
Why is the Japanese currency, Yen, weaker than the Indian rupee?
Japan is one of the most developed and largest economies in the world. Its currency, the Yen, is the third most traded currency in the world. Being a powerful country, why is the Yen weaker than the Indian Rupee?
Low-interest rates: In Japan, the interest rates are low, almost close to zero. The yield on a 10-year bond is 0.25%. The Japanese government has kept the interest rates low to increase the country's inflation and boost economic growth. Even when other countries were increasing interest rates, Japan didn't. Hence Japan hardly attracted any foreign investment, making its currency weak.
Low inflation: Japan has a very low inflation rate. For the longest time, the country battelled with deflation, hindering economic growth. The corporate profits were low, the debt was high, and financial markets activities were hampered. This could be why the Japanese Yen is weak.
Devaluation: Japan devalued its currency in 2013 after facing stagnation in economic growth. Japan devalued its currency to boost its exports and economic growth. This, combined with 0% interest rates, has led to the depreciation of the currency, leading to higher exports.
If you compare Japan with India, you will see that the growth in India is higher than in Japan. The inflation and interest rates are also higher in India. Hence the value of INR is higher than JPY.
Why does Japan have negative rates?
The inflation in Japan is low compared to other countries. Hence the Bank of Japan has kept its rates low. Moreover, the country has a very high debt, and rising interest rates can now affect its fiscal health. Since Japan was facing deflation for a long time, the government wanted people to spend rather than save by incentivising spending and loaning instead of saving to increase inflation levels.
Indian Rupee to Japanese Yen Exchange Rate Historical Data
Interesting facts about Yen
- The weight of one Yen coin is one gram.
- Yen translates into a round object, which is the shape of a coin.
- Yen is the most secure currency, and it is difficult to counterfeit it. The Yen uses multiple security features like a watermark, ultra-fine line and micro printing, holograms, and luminescent ink.
Frequently Asked Questions
Is the Japanese Yen stronger than the Indian Rupee?
No, the Japanese Yen isn't stronger than the Indian Rupee. This is mainly because continued low-interest rates, low inflation, and high debt on its books have led to the depreciation of the Yen.
What is the weight of the Yen?
The weight of one yen coin is exactly one gram.
What is Japan's main currency?
The legal tender of Japan in Yen. It replaced the complex monetary system of clan notes and paper money issued by the feudal lords. The Yen was introduced to have one single currency throughout the country and standardise the monetary system in the county.
Can I use the Indian rupee in Japan?
No, you cannot use INR in Japan. You have to exchange the currency in India or in Japan.
Should I exchange money before I travel to Japan?
It is always better to exchange money in your home country before travelling to a foreign country. This will save you from the last-minute hassle and helps you escape the exorbitant exchange rates in airports.
How much is the Japanese ATM fee?
Until and unless you are eligible for a Japanese bank account and debit card, you have to pay a standard ATM fee of 110 JPY during business hours and 220 JPY outside business hours to withdraw money from an ATM in Japan.
How much cash can I carry to Japan?
If you carry more than one million Yen in cash or other forms, you will have to declare it at the customs department in Japan airport.
List of supported countries
Common currency conversion values at today’s exchange rate:
Commonly used currency terms are:
1 crore which has 7 zeroes - 1,00,00,000
1 Arab which has 9 zeroes - 1,00,00,00,000
1 Kharab which has 11 zeroes - 1,00,00,00,00,000
1 Neel which has 13 zeroes - 1,00,00,00,00,00,000
1 Padma which has 15 zeroes - 1,00,00,00,00,00,00,000
1 million which has 6 zeroes - 1,000,000 (Ten lakh in Indian common currency terms)
1 billion which has 9 zeroes - 1,000,000,000 (One Arab in Indian common currency terms)