Exchange Rate Calculator

The exchange rate between the Japanese Yen (JPY) and the Indian Rupee (INR) has experienced notable fluctuations over the past few months. This report provides an analysis of the JPY/INR exchange rate trends, key influencing factors, and potential implications for stakeholders.

Recent Exchange Rate Trends

Between September 2024 and March 2025, the JPY/INR exchange rate exhibited significant variability. The highest recorded rate during this period was ₹0.5943 per ¥1 on March 10, 2025, while the lowest was ₹0.5401 per ¥1 on November 14, 2024. The average exchange rate over these six months was approximately ₹0.5617 per ¥1. (exchange-rates.org)

In early 2025, the exchange rate showed an upward trend. On January 7, 2025, the rate was ₹0.5425 per ¥1, marking the lowest point in that year. By March 10, 2025, it had risen to ₹0.5943 per ¥1, representing an increase of about 9.5% over two months. (exchange-rates.org)

Factors Influencing the Exchange Rate

Several factors have contributed to the fluctuations in the JPY/INR exchange rate:

1. Economic Indicators: Japan's economic performance, including GDP growth, inflation rates, and trade balances, directly impacts the Yen's strength. Similarly, India's economic indicators influence the Rupee's value. Divergences in these indicators can lead to exchange rate volatility.

2. Monetary Policies: Decisions by the Bank of Japan and the Reserve Bank of India regarding interest rates and monetary policies affect investor confidence and capital flows, thereby influencing the exchange rate.

3. Global Market Sentiment: As a safe-haven currency, the Yen often appreciates during global economic uncertainties, while the Rupee may depreciate under similar conditions.

4. Trade Relations: Bilateral trade volumes and agreements between Japan and India can impact demand for each other's currencies, affecting the exchange rate.

Implications for Stakeholders

The volatility in the JPY/INR exchange rate has several implications:

• Importers and Exporters: Businesses engaged in trade between Japan and India may face challenges in pricing and profitability due to exchange rate fluctuations. Hedging strategies can mitigate some of these risks.

• Investors: Currency volatility can affect returns on investments denominated in Yen or Rupees. Diversification and currency risk management are essential considerations.

• Tourists and Remittances: Individuals traveling between the two countries or sending remittances may experience varying costs and values due to exchange rate changes.

Conclusion

The JPY/INR exchange rate has shown considerable movement over the past few months, influenced by economic indicators, monetary policies, global market sentiment, and trade relations. Stakeholders should monitor these factors closely and consider appropriate risk management strategies to navigate the associated uncertainties.