Yen Peso: A Currency Comparison

Introduction
The Japanese yen (JPY) and the Philippine peso (PHP) are two of the most important currencies in Asia. They are both used in major economies, and they are both popular currencies for international trade and investment.

Historical Exchange Rates
The historical exchange rate between the yen and the peso has fluctuated significantly. From 1990 to 2007, the value of the peso grew consistently against the Japanese yen, with the average annual increase being 2.57%. This is primarily attributed to the Philippines' strong economic growth and the yen's weakness during that period.

In 2008, the financial crisis hit the global economy, and the value of the peso fell sharply against the yen. The yen's safe-haven status during this period of economic uncertainty led to increased demand for the currency. This demand, coupled with economic weakness in the Philippines, caused the value of the peso to fall significantly. By 2019, the yen had regained its value against the peso, with a value of ₱1.11 to ¥1.00. In recent years, the value of the peso has been relatively stable against the yen.

Factors Affecting the Exchange Rate
Several factors affect the exchange rate between the yen and the peso. These factors include economic growth, interest rates, and inflation.

• Economic Growth: Economic growth in the Philippines and Japan affects their currencies' demand. Strong economic growth in the Philippines increases the demand for the peso, which can lead to an appreciation of the peso against the yen. Conversely, weak economic growth in Japan can lead to a depreciation of the yen against the peso.
• Interest Rates: Interest rates in the Philippines and Japan also affect the exchange rate. Higher interest rates in the Philippines make it more attractive for investors to hold pesos. This increased demand for pesos can lead to an appreciation of the peso against the yen.
• Inflation: Inflation in the Philippines and Japan can also affect the exchange rate. Higher inflation in the Philippines can reduce the value of the peso, making it less attractive for investors. This decreased demand for pesos can lead to a depreciation of the peso against the yen.

Current Exchange Rate
As of March 8, 2023, the exchange rate between the yen and the peso is ₱1.11 to ¥1.00. This rate has been relatively stable in recent months.

Conclusion
The exchange rate between the yen and the peso is determined by various factors including economic growth, interest rates, and inflation. The current exchange rate is ₱1.11 to ¥1.00, and it has been relatively stable in recent months.