NZD/JPY

NZD/JPY is a currency pair, one of the "yen crosses".

It is comprised of the New Zealand dollar and the Japanese yen.

The Yen is a historically low-yielding currency, making an attractive vehicle to fund carry trades (where traders borrow cheaply in JPY to buy higher-yielding currencies, including NZD). At times of optimism about global economy, investors are likely to favor carry trades and shun them at times of market stress. This makes NZD/JPY sensitive to swings in broad-based market sentiment trends. The pair is likewise responsive to economic news – both domestic and that of key trading partners (notably China) – that shapes expectations for Reserve Bank of New Zealand monetary policy.