The Japanese Yen is in a different weight-class than the Malaysian Ringgit. It is the third most traded currency in the world and it is also a popular reserve currency. The MYR/JPY pair is not a major pair however. Its trading is only recommended to very experienced and skilled FX professionals.
The Malaysian Ringgit was introduced in 1975. For a while there, it was at par with the Singapore Dollar. The two countries (and Brunei) had been in a currency union, which fell apart.
The Malaysian economy may not be a powerhouse, but it is most definitely a regional actor to consider. Currently based on services and manufacturing, its agricultural commodities and minerals sectors are strong as well.
The recent financial crises that shook the world economy had a major impact on the investment sector of the Malaysian economy.
Although it has gradually lost ground against the USD, the MYR is still trading at a little over 4:1 against the greenback.
The name “ringgit” means “jagged” in Malay. The origins of the name can probably be traced back to the Spanish dollar which featured serrated edges.
As mentioned, the Japanese Yen is one of the world’s major reserve currencies. It is backed by an economy which can indeed be the envy of many. A major industrial nation since before World War II, Japan’s economy is only rivaled by those of other industrial superpowers, such as the US and China.
The country exports cutting edge industrial products such as machinery, steel, ships, nonferrous metals, processed foods, motor vehicles etc.
Japan’s fishing industry is probably the most advanced in the world, with the highest degree of productivity. The country accounts for some 15% of global fishing output.
Although allegedly dwindling, Japan’s labor force totals some 65.9 million people – far exceeding any individual European nation in this regard.
While the unemployment rate is a mere 4%, one in every 6 Japanese live in poverty – at least that was the case back in 2007.
The Yen was introduced in 1871, replacing a very complex and cumbersome financial system used beforehand.
The JPY is not pegged to any currency, and currently there are no currencies pegged to it either.
Interestingly, exports from Malaysia to Japan exceed the volume of exports from Japan to Malaysia. This is largely due to Japan’s increasing need for liquefied natural gas.
MYR JPY Currency Converter
Other major currency pairs
BUY - rate is expected to increase, i.e. the first currency gains value against the second currency.
SELL - rate is expected to go down, i.e. the first currency is expected to lose value against the second currency.