Why Is the Japanese Yen Still Weak? BOJ Rates, Intervention and GBP/JPY Explained

The Japanese yen is one of the world's major currencies, widely traded in global foreign exchange markets. It is also often described as a safe-haven currency, although its behaviour can vary depending on market conditions.

The yen has experienced periods of sustained weakness in recent years, even as Japan has begun moving away from the very low interest rates that had characterised its monetary policy for years.

The Bank of Japan (BOJ) is currently guiding its overnight interest rate to around 1.0%, following its July 2026 monetary policy meeting. Meanwhile, the Bank of England (BoE) has maintained the Bank Rate at 3.75%, leaving a sizeable difference between the two countries' policy rates.

So why has the yen remained weak?

The answer is not simply that Japanese interest rates are “too low”. Currency values are shaped by several forces at once, and interest rates are only one part of the picture.

When comparing two currencies, investors and businesses may consider the interest rates available in each economy, inflation, economic growth, expectations for future monetary policy, market sentiment and the flow of money between countries. These factors can pull a currency in different directions at the same time.

That is why a rate increase does not automatically translate into a stronger currency. A higher Japanese interest rate can alter the relative attractiveness of yen-denominated assets, although other market factors also matter. For example, while the yen may remain under pressure if interest rates elsewhere remain higher or if market participants expect the difference between those rates to persist.

There is another important part of the story: Japan has also demonstrated that it is prepared to intervene in the foreign exchange market when authorities consider currency movements to be excessively volatile or disorderly.

In the second quarter of 2026, Japan's Ministry of Finance reported ¥11.7349 trillion of foreign exchange intervention, involving the sale of US dollars and purchases of yen. The Ministry subsequently stated that Japan and the US Treasury carried out coordinated yen-buying intervention on 31 July 2026.

Put these pieces together and the yen becomes a useful case study in how currencies actually move: not according to one number, but through the interaction of interest rates, expectations, economic conditions, capital flows and official intervention.

This article looks at the main forces behind Japanese yen weakness, including Bank of Japan policy, the role of interest-rate differences, Japan's approach to Yen Intervention, and what these factors can mean for the pound and the GBP/JPY exchange rate.

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Why Is the Japanese Yen So Weak?

There is no single lever that determines whether the yen is strong or weak.

Its value is determined in the foreign exchange market, where currencies are bought and sold against one another. It is important to understand that a currency does not have one universal “strength” or “weakness” in isolation. Its value is always expressed against another currency.

For example, if GBP/JPY rises, one pound buys more yen than before. That can happen because sterling has strengthened against the yen, because the yen has weakened against sterling, or because of movements affecting both currencies.

So, when asking why the Japanese yen is weak, the more useful question is: what is influencing demand for the yen compared with the currencies it is being traded against?

This is where interest-rate differentials become important.

An interest-rate differential is simply the difference between the interest rates of two economies. For someone comparing the UK and Japan, that means looking not only at the level of Japanese interest rates, but also at the gap between Japanese and UK rates and how that gap may change.

As of July 2026, the BOJ was guiding its overnight call rate to around 1.0%, while the UK's Bank Rate stood at 3.75%.

The difference matters because interest rates can influence the relative attractiveness of holding assets denominated in different currencies. But it is not a simple equation in which the currency with the higher interest rate automatically wins.

Markets also respond to information about what may happen next.

For example, if a BOJ rate increase has already been widely anticipated, the decision itself can have a more limited market effect when the decision was already widely anticipated. Equally, new economic data such as inflation or wage figures can change expectations about future interest rates before a central bank makes any formal decision.

In other words, the yen can respond both to what has happened and to what new information suggests may happen next.

And sometimes, the two can point in different directions. A rate increase may support the yen, for instance, while a wider difference between Japanese and overseas rates continues to weigh on it.

That is one reason currency markets can look rather less tidy than a central-bank announcement might suggest.

Japan's Long Period of Very Low Rates

For many years, Japan maintained interest rates at very low levels compared with many other major economies. The prolonged low-rate environment contributed to the yen's role as a funding currency i.e. a currency used to borrow money for investment or other financial positions elsewhere.

One strategy associated with this environment is the yen carry trade.

What is the Yen Carry Trade?

In broad terms, a carry trade involves borrowing in a currency with relatively low funding costs and using the proceeds to invest in assets or currencies where the expected return may be higher. The potential benefit comes from the difference in returns, but the exchange rate introduces another source of risk. How? For someone who has borrowed yen and converted it into another currency, a stronger yen can mean needing more of the other currency to repay the same yen-denominated borrowing.

The existence of yen-funded positions does not mean investors are simply “betting against the yen”. It means that the yen has become part of a wider network of international borrowing, investment and hedging activity.

As the BOJ has moved towards higher interest rates, the economics of those positions can change. But financial positions are not automatically unwound the moment a central bank changes its policy rate. Their impact depends on the wider interest-rate environment, exchange-rate movements, market expectations and the decisions of the institutions and investors involved.

But the carry trade is not the whole explanation.

Japanese economic conditions, overseas interest rates, energy prices, global risk appetite, capital flows and expectations for central-bank policy can all influence the currency.

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Why Haven't BOJ Rate Hikes Strengthened the Yen More?

This is perhaps the most natural question.

If higher Japanese interest rates can make yen-denominated assets more attractive, why hasn't the yen simply marched higher?

Because the BOJ does not set interest rates in a vacuum.

In July 2026, the BOJ maintained its policy guidance at around 1.0%, with the decision passing by an 8–1 vote. One member argued for a higher 1.25% rate.

At the same time, the UK's Bank Rate was 3.75%.

The relative gap therefore remains important. Imagine two savings accounts. One has moved from paying almost nothing to paying 1%, while the other pays 3.75%. The first account has become more attractive than it was before, but that does not automatically make it more attractive than the second.

Currencies work in a similarly relative fashion. There is also the question of what happens next.

If markets believe Japanese rates could rise gradually while UK rates remain comparatively high, the existing interest-rate gap may remain one factor influencing the relative attractiveness of sterling and yen-denominated assets.

If expectations change, perhaps because Japanese inflation proves more persistent, Japanese wages strengthen, or the BOJ signals a faster pace of tightening, the balance can change. The reverse is also true.

If UK rates are expected to fall more quickly,the interest-rate gap between the UK and Japan could narrow even without a BOJ rate increase.

This is why saying “the BOJ raised rates, so the yen should rise” is too simplistic.

A better question is:

How has the expected path of Japanese rates changed relative to the expected path of rates elsewhere?

That is a much more useful way to think about currency markets.

Sometimes policymakers decide that market movements have become too disorderly.

Japan's Ministry of Finance is responsible for foreign exchange intervention, with the BOJ acting as its agent in carrying out the transactions.

In practical terms, yen-supporting intervention generally involves selling foreign currency reserves and buying yen.

The intention is not necessarily to choose a particular exchange rate and defend it forever. Intervention can instead be aimed at addressing what Japanese authorities consider excessive volatility or disorderly market movements.

A currency can be weak without being the subject of intervention. Intervention is about the authorities' response to market conditions, not a declaration that a particular exchange rate is inherently “correct”.

Japan has been active on this front in 2026.

The Ministry of Finance reported ¥11.7349 trillion of intervention between April and June, on 30 April, 4 May and 6 May, involving sales of US dollars and purchases of yen.

The Ministry later reported no intervention during the period from 29 June to 29 July.

However, on 3 August, Japan's Finance Minister stated that Japan had purchased yen in coordination with the US Treasury on 31 July, describing the action as a response to excessive volatility and disorderly movements in the yen. The statement also said Japan would not hesitate to conduct further joint intervention.

This is an important example of why intervention data needs to be read alongside its reporting dates.

The absence of intervention in one published period does not mean intervention cannot occur shortly afterwards.

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Has Currency Intervention Actually Worked?

The answer is more nuanced. Intervention can influence the market, but its effect on an exchange rate may depend on the wider economic and financial conditions at the time.

Intervention can affect buying and selling activity in the FX market and it can also influence expectations.

If traders and institutions believe Japanese authorities are prepared to intervene again, that possibility itself may affect behaviour. In other words, the intervention can sometimes have an effect beyond the actual amount of currency bought or sold. But there is a limit. If the underlying forces pushing a currency in one direction remain powerful, such as a large interest-rate differential, strong capital flows or changing expectations, intervention may struggle to produce a lasting reversal on its own.

It is rather like trying to steer a large ship with a powerful but finite rudder. The rudder matters. But so does the direction and strength of the current.

This is why it is safer to think of Yen Intervention as one influence among several rather than a guaranteed mechanism for making the yen stronger.

For businesses with future yen payments or receipts, exchange-rate movements can affect costs or revenues; that distinction is especially important. An expectation that authorities will intervene does not provide certainty over the exchange rate available when a payment eventually needs to be made.

What Does Yen Weakness Mean for GBP/JPY?

GBP/JPY is the exchange rate between the British pound and the Japanese yen. Put simply, it shows how many Japanese yen are needed to buy one pound.

That makes the direction of the pair relatively straightforward to understand:

• If GBP/JPY rises, one pound is worth more yen than before. In exchange-rate terms, this means sterling has strengthened against the yen, or the yen has weakened against sterling.

• If GBP/JPY falls, one pound is worth fewer yen than before. This means sterling has weakened against the yen, or the yen has strengthened against sterling.

These are the basic mechanics of the currency pair. They describe what a movement in the quoted exchange rate means; they do not, on their own, explain why the rate has moved or predict how the market will respond to a particular event. This distinction is important to consider when looking at Japanese yen weakness.

A yen that is weakening against the US dollar, for example, does not necessarily move by the same amount against sterling. The US dollar is relevant because USD/JPY is one of the world's most actively traded currency pairs and is often used when assessing broader movements in the yen. But GBP/JPY is a separate currency pair, with sterling on one side and the yen on the other.

In other words, GBP/JPY needs to be understood from both sides of the exchange rate.

Factors affecting the pound can include UK inflation, economic growth, Bank of England policy and expectations about future UK interest rates. Factors affecting the yen can include BOJ policy, Japanese economic data, expectations for Japanese interest rates, official intervention and changes in global market sentiment.

These are some of the factors that can drive movements in the two currencies. Because GBP/JPY reflects the value of one currency against the other, a change in either sterling or the yen can affect the pair.

This also means that GBP/JPY can respond to developments outside the UK and Japan. For example, a significant change in US interest-rate expectations can influence global bond yields, investor sentiment and major currency pairs such as USD/JPY. Those movements can, in turn, affect the wider foreign exchange market and feed through into GBP/JPY. The eventual effect, however, depends on the circumstances and the information being priced into the market at the time.

The relationship between interest rates provides another useful example.

If Japanese interest rates rise while UK rates remain higher for longer, the existing difference between the two countries' rates may remain significant. That could affect how markets assess sterling and the yen. If, instead, Japanese rates rise while UK rates are falling, the difference between the two may narrow more quickly, potentially changing the factors influencing GBP/JPY.

Neither scenario provides a guaranteed direction for the exchange rate. Currency markets respond to a combination of economic data, policy decisions, expectations, positioning and other market conditions.

So a headline such as “BOJ raises rates” tells us something important about Japanese monetary policy, but it is not, by itself, a complete explanation of what happened or what will happen next to GBP/JPY. And why a single headline such as “BOJ raises rates” should not be treated as a complete explanation for the currency pair.

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Factors That May Influence Yen Strength

There are several factors that could influence the yen's value and depending on the wider market environment, contribute to yen strength. These are not predictions of what will happen. They are the main factors when considering the Japanese yen's strength, weakness and outlook.

1. A narrowing interest-rate gap

One factor is the difference between the interest rates set by the BOJ and those set by central banks in other major economies.

If the BOJ continues to raise its policy rate while other major central banks reduce theirs, the gap between Japanese and overseas interest rates could narrow.

Why does that matter?

Interest-rate differences can influence where investors and institutions choose to hold or borrow money. A smaller gap may reduce one of the factors that has historically made yen-funded positions attractive compared with currencies offering higher interest rates.

One important consideration is not simply whether Japanese interest rates are higher than they were before. It is how the interest-rate gap between Japan and other economies changes over time.

2. Stronger Japanese inflation and wages

Inflation and wage growth can also influence expectations about BOJ policy.

If inflation remains persistent and wage growth becomes stronger, market participants may place greater weight on the possibility of further monetary-policy tightening.

That can change expectations about future Japanese interest rates and, in turn, influence demand for the yen.

However, the relationship is not one-way. The effect of inflation or wage data depends on what the figures show, what markets were already expecting and how the BOJ interprets the wider economic picture.

3. A weaker overseas currency

The yen can also strengthen against a currency because that other currency has fallen in value against the yen.

Take sterling as an example.

If GBP/JPY falls, the pound buys fewer yen than before. That could reflect a stronger yen, a weaker pound, or movements affecting both currencies.

The same principle applies to other currencies. A change in the value of the US dollar, euro or another major currency can alter how the yen appears against it.

For GBP/JPY specifically, this means the pound side of the exchange rate matters just as much as the yen side. A change in UK inflation, economic conditions or expectations for Bank of England policy could therefore influence the pair even if there has been no corresponding change in Japanese monetary policy.

4. Further Japanese intervention

Japan has demonstrated that it is willing to intervene in the foreign exchange market. The Ministry of Finance's intervention data for 2026 provides a clear example, with yen-buying operations reported during the year.

Intervention matters because it introduces another potential source of demand for the yen alongside the usual market forces.

But the important point is not to try to predict whether a particular intervention will strengthen the yen by a particular amount.

Rather, it is to understand what intervention can do and why it matters.

Official intervention can influence buying and selling activity in the foreign exchange market and may also affect expectations about how Japanese authorities could respond to significant or disorderly currency movements. Its eventual effect on exchange rates, however, depends on the wider conditions in the market at the time.

For businesses or individuals exposed to GBP/JPY, this means that intervention is one of several factors that may affect the exchange-rate environment.

This is where currency risk management becomes relevant. Businesses with future yen payments or receipts may wish to consider how much an exchange-rate movement could affect their costs or revenues, rather than relying on a particular view about where GBP/JPY might go.

Further educational material on currency risk management is available on the website: currency risk management insights.

5. Changes in global risk appetite

The yen is often described as a safe-haven currency, meaning that it can attract demand during periods when investors become more cautious about risk.

This can matter because financial markets do not operate country by country in isolation. A major change in investor confidence, financial-market volatility or expectations about the global economy can influence where money moves between different markets and currencies.

If investors become more cautious, demand for currencies perceived as safer can sometimes increase, which may support the yen.

But there is no automatic rule that says “more uncertainty means a stronger yen”. Other factors including interest-rate differences, existing investment positions and the source of the market uncertainty can influence how currencies respond.

The useful takeaway is therefore not to treat any one factor as a switch that turns yen strength on or off.

Instead, Japanese yen strength or weakness is better understood by looking at several influences together: the interest-rate gap between economies, Japanese inflation and wages, movements in other major currencies, official intervention and broader conditions in global financial markets.

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What Factors Could Move GBP/JPY Next?

Rather than looking for a single number or event that might determine where GBP/JPY goes next, it can be more useful to understand the main factors that can influence the exchange rate.

No individual indicator provides a reliable answer on its own. The significance of any economic figure, policy decision or market development depends on the wider circumstances and what market participants were expecting beforehand.

Bank of Japan policy

BOJ interest-rate decisions, its assessment of the Japanese economy and inflation, and comments from policymakers can all influence expectations about the future path of Japanese interest rates. The BOJ's next scheduled monetary policy meeting after July 2026 is on 17–18 September 2026.

For GBP/JPY, the important point is not simply whether the BOJ raises, holds or lowers rates. The wider question is how the decision changes expectations about Japanese monetary policy compared with expectations for other major economies.

Bank of England policy

The UK side matters just as much. The Bank of England maintained the Bank Rate at 3.75% at its July 2026 meeting, although three members voted for a 25-basis-point increase to 4%.

That split is useful context because a central bank's decision is not always captured by the headline interest rate alone. The voting pattern, economic assessment and comments from policymakers can also influence how markets assess the likely direction of UK monetary policy.

For GBP/JPY, this matters because the exchange rate reflects the value of sterling against the yen. A change in expectations about UK interest rates can therefore affect the pair even when Japanese monetary policy has not changed.

Japanese intervention and USD/JPY

Statements from Japan's Ministry of Finance can be relevant because they can provide information about how authorities view movements in the yen and whether they may consider action in the foreign exchange market.

It is important, however, to distinguish between official comments about currency movements and an actual intervention operation.

USD/JPY can also provide useful context here. It is a major yen currency pair, so significant movements in USD/JPY can help illustrate broader changes in the value of the yen. However, USD/JPY and GBP/JPY are different currency pairs, and movements in one should not be treated as a direct indication of where the other will move.

For someone following GBP/JPY, USD/JPY is therefore best viewed as part of the wider picture rather than a standalone signal.

Inflation and economic data

Inflation, wages, employment and economic-growth figures can influence expectations about future central-bank policy.

The important question is not simply whether a figure appears “good” or “bad”. A stronger-than-expected inflation figure, for example, may affect expectations about interest rates, while a weaker figure may have a different effect.

The same data can also have a different market impact depending on what investors and institutions were expecting before its release.

For GBP/JPY, this means economic data from both the UK and Japan can matter. Japanese data can influence expectations for BOJ policy, while UK data can influence expectations for Bank of England policy.

Global interest rates and risk sentiment

The yen does not exist in a Japanese bubble.

Changes in US interest rates, global bond yields, equity-market volatility and broader investor sentiment can influence the movement of money between markets and currencies.

This is another reason USD/JPY and global interest-rate differentials can provide useful context when considering GBP/JPY. The US dollar is not one half of the GBP/JPY pair, but developments in US markets can influence global interest rates, investor behaviour and other major currency pairs, including USD/JPY. Those wider movements can sometimes feed into the broader foreign exchange market.

Ultimately, GBP/JPY reflects two currencies at once. Understanding what is happening to the yen is only one part of the picture; understanding what is happening to sterling is the other.

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Managing GBP/JPY Exchange Rate Risk

For someone buying yen for a holiday, sending money to Japan or making a larger business payment, the question is often much more practical than “Where will GBP/JPY go?”

It may simply be:

How much will this payment cost in pounds?

That is where currency risk becomes relevant.

Suppose a UK business knows it must pay a Japanese supplier in yen in three months. If GBP/JPY moves during that period, the sterling cost of the invoice can change even though the yen amount on the Japanese invoice has stayed exactly the same.

For a small payment, the difference may be manageable.

For a large-value GBP/JPY transfer, the difference can become much more meaningful.

This is particularly relevant for companies with regular UK to Japan business payments, where currency exposure can affect budgeting, margins and cash-flow planning.

Timing is only one part of the decision

It can be tempting to think that successful currency management means finding the perfect moment to convert.

While that sounds appealing, it is also a rather difficult game.

No one can know with certainty what an exchange rate will be tomorrow, next week or three months from now.

For businesses, JPY currency risk management and hedging can therefore be less about predicting the market and more about managing uncertainty.

Depending on the circumstances, businesses may consider approaches such as forward contracts or other risk-management arrangements. The suitability of any particular approach depends on the business's circumstances, objectives, cash-flow requirements and risk appetite and should be considered with appropriately authorised professional support where relevant.

For individuals, compare the exchange rate being offered, understand the fees and spreads, check the amount the recipient will actually receive and consider whether the timing of the transfer is practical.

The headline rate is not necessarily the whole cost.

Japan Transfer Fees, FX Spreads and Payment Costs

When sending money internationally, there can be more than one cost.

An FX spread generally refers to the difference between a provider's quoted exchange rate and a relevant market or reference rate.

That means two providers can advertise apparently similar transfer fees while producing different final amounts in yen.

For someone making international money transfers to Japan, the useful comparison is therefore not simply:

“How much is the transfer fee?”

It is:

“How many yen will arrive for the total amount I am paying?”

That distinction can become increasingly important for larger transfers.

For example, a small difference in the exchange rate may appear trivial on a modest personal transfer. Applied to a much larger transaction, the same difference can become more noticeable.

Anyone comparing providers should therefore look at the total cost, including any stated fees, the exchange rate offered, the timing of the payment and any relevant receiving-bank charges.

Large-Value GBP/JPY Transfers and Conversion Timing

Large currency transfers can create a slightly different problem.

Trying to pick the perfect exchange rate can turn into a guessing game. Instead, businesses and individuals may want to consider the practical consequences of the exchange rate moving before the payment is completed.

For a property purchase, supplier invoice or other substantial yen payment, even a relatively small currency movement can change the sterling amount required.

This is why large-value GBP/JPY transfers and conversion timing deserve more thought than simply checking today's rate.

A practical way to think about the issue is to ask:

1. When does the yen actually need to arrive?
2. How much exchange-rate movement could the budget absorb?
3. Would certainty over the future exchange rate be more valuable than waiting for a potentially better rate?

_{(Neither approach is inherently preferable; the appropriate choice depends on the transaction and the business's objectives and risk tolerance)}

There is no universal answer.

For some transactions, flexibility may be more important. For others, knowing the sterling cost in advance may matter more.

The key is to separate currency management from currency prediction.

You do not necessarily need to know where GBP/JPY will go to understand how much exposure you have to it.

Sending Money to Japan: What Should You Check?

For anyone planning a payment to Japan, whether for family, property, education, business or another legitimate purpose, it is worth looking beyond the headline exchange rate.

Consider:

• the exchange rate offered;
• any explicit transfer fees;
• whether the quoted rate includes an FX spread;
• how long the transfer is expected to take;
• the amount the recipient is expected to receive;
• whether the receiving bank may apply its own charges; and
• whether the exchange rate is guaranteed for the period needed to complete the transaction.

For more information on the practical process of sending money to Japan, see the dedicated currency-transfer guide: Send money to Japan.

The purpose of comparing these factors is not to predict the market. It is to understand the transaction before committing to it.

So, Why Is the Japanese Yen Still Weak?

The answer is more complicated and more interesting, than simply saying “Japan has low interest rates”.

Japanese rates have risen considerably from their previous levels. The BOJ is currently guiding its overnight call rate to around 1.0%, while the UK Bank Rate is 3.75%.

Yet the yen remains influenced by the relative gap between Japanese and overseas rates, expectations about future policy, the legacy of yen-funded positions, global capital flows and risk sentiment.

Japan has also shown that it is willing to intervene in the FX market. The country intervened heavily during April–May 2026 and subsequently confirmed coordinated yen-buying intervention with the US Treasury on 31 July. (Ministry of Finance Japan)

But intervention does not make the underlying forces disappear.

And that is probably the most useful lesson from the yen's recent story.

Currencies are relative prices.

The yen does not need to be “weak” in isolation. It can be rising against one currency while falling against another. It can strengthen because Japanese rates are expected to rise, or because another country's rates are expected to fall. It can react to intervention, changing risk appetite or a shift in global investment flows.

For anyone watching GBP/JPY, that means the most useful question is rarely “Is the yen strong or weak?”

It is:

What is changing on the Japanese side, what is changing on the UK side, and what is the market already expecting?

That is where the more interesting part of the currency story begins.

For ongoing commentary on currencies, central-bank decisions and FX markets, readers can explore the latest currency insights and market commentary.

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Frequently Asked Questions

Why is the Japanese yen weak?

Japanese yen weakness reflects several factors rather than one cause. These include differences between Japanese and overseas interest rates, expectations for future central-bank policy, global capital flows, the carry trade and changes in investor risk appetite. Japanese authorities have also intervened in the foreign exchange market in 2026. (Ministry of Finance Japan)

Is the Bank of Japan still raising interest rates?

The BOJ has moved away from its previous ultra-low-rate environment. At its July 2026 meeting, it maintained guidance for the uncollateralised overnight call rate at around 1.0%. One policymaker proposed 1.25%, but that proposal was rejected.

What is the yen carry trade?

The yen carry trade generally involves borrowing in yen and using the funds to invest in another currency or asset with a potentially higher return. The strategy can be sensitive to exchange-rate movements, interest-rate changes and market volatility. (Bank for International Settlements)

What is yen intervention?

Yen intervention refers to official foreign exchange operations intended to influence the yen's exchange rate or address excessive volatility and disorderly market conditions. Japan's Ministry of Finance has conducted yen-buying intervention in 2026. (Ministry of Finance Japan)

Can intervention make the yen stronger?

Intervention can influence exchange rates by changing buying and selling pressure and by affecting market expectations. However, it does not guarantee a lasting change in the yen's value. Other forces, including interest-rate differentials, capital flows and economic expectations, continue to influence currency markets.

What does yen weakness mean for GBP/JPY?

GBP/JPY expresses the value of one pound in Japanese yen. If GBP/JPY rises, sterling has strengthened against the yen or the yen has weakened against sterling. If GBP/JPY falls, the opposite is true. The exchange rate is influenced by both UK and Japanese economic and monetary conditions.

What could make the Japanese yen stronger?

Potential influences include a narrowing of the Japanese interest-rate gap with other economies, expectations of further BOJ policy tightening, changes in global risk appetite, further official intervention or a weakening of currencies such as sterling against the yen. These are potential drivers, not forecasts.

What should I consider when sending money to Japan?

Look beyond the advertised transfer fee. Consider the exchange rate, any FX spread, transfer charges, expected delivery time, the amount the recipient will receive and any possible charges applied by the receiving bank.

How can a business manage GBP/JPY currency risk?

Businesses with future yen payments, where appropriate may consider currency-risk management techniques, including hedging arrangements, depending on their circumstances and objectives. The purpose can be to manage uncertainty rather than to predict the direction of GBP/JPY. Businesses considering specific hedging arrangements should consider obtaining appropriate professional advice where required.

Where can I learn more about GBP/JPY and the yen?

Currency markets are influenced by changing economic data, central-bank policy and market conditions, so information can become dated quickly. Readers can follow ongoing FX market insights and currency commentary for further analysis.