Exchange Rate Calculator

The exchange rate between the Indian Rupee (INR) and the Japanese Yen (JPY) has experienced notable fluctuations over the past few months. Understanding these movements requires an examination of recent trends, underlying economic factors, and potential future projections.

Recent Exchange Rate Trends

As of July 3, 2025, the INR/JPY exchange rate stands at approximately 1 INR to 1.69 JPY. This reflects a depreciation of the Indian Rupee against the Japanese Yen compared to earlier in the year. For instance, on January 23, 2025, the exchange rate was 1 INR to 1.8054 JPY. (exchangerates.org.uk)

In the first quarter of 2025, the INR/JPY exchange rate exhibited relative stability, fluctuating between 1.70 and 1.80. However, starting in April, the Rupee began to weaken against the Yen, leading to the current rate of 1.69.

Economic Factors Influencing the Exchange Rate

Several economic factors have contributed to the recent depreciation of the Indian Rupee against the Japanese Yen:

1. Interest Rate Differentials: The Bank of Japan has maintained a low-interest-rate policy to stimulate economic growth, while the Reserve Bank of India has adjusted its rates in response to domestic inflationary pressures. These differing monetary policies can influence investor behavior and capital flows, impacting the exchange rate.

2. Trade Balances: India's trade deficit with Japan has widened in recent months, increasing demand for the Yen and exerting downward pressure on the Rupee.

3. Global Economic Conditions: Uncertainties in the global economy, including supply chain disruptions and fluctuating commodity prices, have affected emerging market currencies like the Rupee more significantly than safe-haven currencies such as the Yen.

Future Projections

Looking ahead, some forecasts suggest a potential appreciation of the Indian Rupee against the Japanese Yen. For example, projections for September 2025 indicate an expected rise in the INR/JPY exchange rate to approximately 1.567, with a potential return of 4.01% for investors. (coincodex.com)

However, these projections are subject to various uncertainties, including changes in monetary policies, economic growth trajectories, and geopolitical developments.

Conclusion

The INR/JPY exchange rate has experienced a depreciation of the Indian Rupee against the Japanese Yen over the past few months, influenced by factors such as interest rate differentials, trade balances, and global economic conditions. While some forecasts suggest a potential appreciation of the Rupee in the coming months, the exchange rate remains subject to various uncertainties.