1 USD to JPY - Convert US Dollar to Japanese Yen

Over the last 7 days, the USD to JPY exchange rate moved between 155.0830 and 164.6709. The average rate for the week was 159.6422, with a volatility of 2.2%. The US Dollar weakened against the Japanese Yen by 2.9% during this period.

Looking at the 30-day window, the USD/JPY pair traded in a range of 154.1891 to 164.6709. The monthly average was 159.5057 with 1.83% volatility. This upward movement of 3% suggests significant momentum in the USD/JPY exchange rate.

The current mid-market exchange rate is 1 USD = 159.8747 JPY, updated as of June 3, 2026, 11:41 PM UTC. Mid-market rates represent the fairest available rate and are the midpoint between buy and sell prices on global currency markets. Actual transaction rates from banks or money transfer services may include a markup above this rate.

US Dollar to Japanese Yen Exchange Rate

USD/JPY is the second most traded currency pair in the world, after EUR/USD. Japan is the third largest economy globally, and the yen plays a unique role in financial markets as a safe-haven currency. When stock markets crash or geopolitical tensions rise, investors tend to buy yen, pushing the pair lower. This makes USD/JPY one of the most closely watched indicators of global risk appetite.

The Carry Trade That Moves Trillions

For decades, Japan has maintained some of the lowest interest rates in the world, often near zero or even negative. This created the famous "yen carry trade" where investors borrow cheaply in yen and invest in higher-yielding currencies like the dollar or Australian dollar. The trade works beautifully in calm markets, but when panic hits, those positions unwind fast. Investors rush to buy back yen to repay their loans, causing sharp and sudden yen strengthening. Some of the biggest single-day moves in USD/JPY history have come from carry trade unwinds, not economic data.

What Drives the USD/JPY Rate

The interest rate gap between the Fed and the Bank of Japan is the dominant factor. When the Fed raises rates while the BOJ holds near zero, USD/JPY climbs. Japanese trade data, particularly the balance between auto and electronics exports versus energy imports, also matters. The BOJ occasionally intervenes directly in the market by selling dollars and buying yen when the move gets too fast, as it did multiple times in 2022 and 2023.

What a Conversion Really Costs

USD/JPY is highly liquid, so spreads are tight compared to emerging market pairs. Banks typically charge 0.5-2% above mid-market. If you are converting $5,000 to yen at a 1.5% markup, that is about $75 lost. For travelers, using a no-foreign-fee credit card in Japan usually beats exchanging cash. ATMs at Japanese convenience stores (7-Eleven and Lawson) give reasonable rates for cash withdrawals.

How to Get the Best USD to JPY Rate

Check the mid-market rate here, then compare with your provider. For travel to Japan, withdraw yen from convenience store ATMs using a card with no foreign fees. For larger transfers, online services beat banks on rate and fees. Avoid exchanging cash at airports on either end of the trip.