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Best Time To Exchange AUD to Japanese Yen: Should I Buy Now?

Jarrod Suda

Guide

Byron Mühlberg

Reviewer

Jun 12, 2024
Advertiser disclosure

As of mid-2024, the Australian dollar is at its strongest against the Japanese yen in almost a decade. But navigating the foreign exchange market can still be tricky due to the various factors that influence it. Plus, when buying Japanese yen, you want to get the best exchange rates and avoid hidden fees.

Thankfully, online platforms like Wise make this process easier by always offering the mid-market exchange rate and providing tools for automatic conversion.

In this article, we'll explore what affects currency exchange rates between AUD and JPY and introduce Wise, which offers transparent and industry-best currency conversions. By the end, you'll have a better understanding of when to exchange Australian dollars for Japanese yen and how to get the best deal.

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When Is the Best Time to Exchange Australian Dollars to Japanese Yen?

As of mid-2024, the Australian dollar has been the strongest it has been against the Japanese yen in nearly ten years.

On June 1, 2024, the exchange rate was 1 AUD = 104.82 JPY, which was the peak of the last 5 years. This would have been the best time to buy Japanese yen with Australian dollars.

Conversely, the lowest point was on March 20, 2020, when 1 AUD = 62.91 JPY. This would have been the worst time to buy Japanese yen with Australian dollars in recent years.

The key is to buy when the Australian dollar is stronger than Japanese yen, meaning 1 AUD will get you more JPY.

Is the Australian Dollar Stronger Than the Yen?

Yes, the Australian Dollar is currently stronger than the Yen. The reason why is because the AUD has more purchasing power.

While 1 AUD might equal 104 yen or so, what matters is what you can buy with that money. For instance, in 2024, a Big Mac cost $5.07 USD in Australia and $3.04 USD in Japan. This indicates that things are relatively cheaper in Japan than in Australia.

So, when you convert your AUD to JPY for spending during your travels, you'll be able to purchase more with your Australian dollars.

Other Factors That Influence the AUD to JPY Exchange Rate

  • Central Bank Interest Rates: Central banks use interest rates to manage inflation and control the strength of their currency. Sometimes, they raising rates to cool off an overheated economy and increase the strength of their currency. In other periods, they lower rates to stimulate a stagnant economy and devalue the currency.
  • Economic Performance: A strong economy with low inflation, positive trade balances, and robust growth typically results in a stronger currency. A thriving economy boosts confidence in the currency and attracts investment, driving up its value.
  • Political Stability: Political unrest can negatively affect a currency's value, as investors shy away from countries with high political risk due to uncertainty and potential economic disruptions.

Is It a Good Time To Buy Japanese Yen With Australian Dollars Now?

Relative to the past five years, yes, 2024 is a good time to buy Japanese Yen with Australian Dollars. This is because the Australian Dollar reached its peak strength against the Yen during the summer of 2024. Taking advantage of this peak can potentially yield more favourable exchange rates and purchasing power for Australian travelers or investors looking to convert their AUD to JPY.

However, exchange rates fluctuate due to global market changes, making it hard to predict when the Australian dollar will strengthen against the Japanese yen.

You can look at the recent announcements about interest rate changes by the countries' central banks. These are always on the public record. This information can help you factor whether the Australian dollar is sufficiently strong enough for you or if it's worth waiting for it to get stronger.

Monitor the Best AUD to Yen Exchange Rates

A more straightforward strategy is to keep an eye on the AUD-JPY exchange rate, and track how it is doing in comparison to the historic trend. You can easily find exchange rate data on Google or XE.com, which show the mid-market rate.

These platforms allow you to adjust the view by 1, 3, or 6 months, 1 year, 5 years, or even the maximum available timeframe. This way, you get a clear picture of how the AUD has performed against the JPY over time, and how strong it is relative to the recent past.

Set Up Target Rate Alerts

If you’re aiming for a specific rate, consider setting up target rate alerts. Services like Wise offer these alerts in their app. You can specify the rate you’re hoping to achieve, and Wise will notify you if and when the rate hits your target. This way, you can convert your funds or make your payment at the optimal time.

At Monito, you can sign up for email alerts too. Our rate alerts will notify you when exchange rates significantly change and tell you which provider offers the best deal at that moment. Sign up after using our comparison engine.

Is It Better to Buy Yen in Australia or Japan?

As an Australian going to Japan, banks and traditional money changer services will offer poor rates regardless of if you are in Australia or Japan. Kiosks at airports are never best practice.

It's cheaper to simply use a debit card without foreign transaction fees to take out cash at an ATM in Japan. The best case is to get a card that waives the ATM fee. Even if you can't avoid the ATM fee, it's worth it because the exchange rate you get from Mastercard and Visa will almost always be better than the ones you get at a high street bank in Australia or Japan.

The best option is to use a multi-currency account and debit card that gives you the mid-market rate (like Wise). In this case, the exchange happens digitally on your app, so it doesn't matter if you're in Australia or Japan. You'll get the market price no matter what.

What is the Best Rate to Exchange AUD to Yen?

The best rate to exchange AUD to JPY is the mid-market rate, also known as the interbank rate. This rate is the actual exchange rate that large banks use to trade currencies on the global market.

When you decide to buy JPY from traditional financial institutions, such as Australian high-street banks or Western Union, they will charge hidden fees by offering weak exchange rates that are less favorable than the mid-market rate. This hidden fee, often referred to as an exchange rate margin, can add up quickly and significantly increase the cost of your currency conversion.

Open a Free Wise Account For Transparent and Low-Cost Currency Exchanges

Wise is our go-to online money transfer service that offers a user-friendly platform for exchanging currencies at the mid-market rate with transparent, industry-low fixed fees. Here are some of Wise's key features that make it an ideal tool for timing your currency exchanges:

  1. Mid-Market Exchange Rates: Wise always uses the real, mid-market exchange rate, ensuring you get the fairest rate possible without any hidden fees or markups.
  2. Low, Transparent Fees: Wise charges a small, fixed fee for each transfer, which is clearly displayed upfront, so you know exactly how much you'll pay.
  3. Auto-Conversion: Wise offers an auto-conversion tool that automatically exchanges your currencies when the rate hits your target, ensuring you never miss an opportunity.
  4. Rate Alerts: You can set up email or app alerts to notify you when the exchange rate reaches your desired level, allowing you to stay in the know about your favorable rates.
  5. Multi-Currency Account: With Wise's multi-currency account and card, you can hold and manage multiple currencies in one place, making it easier to move money between currencies as needed. Spend your money like a local with a debit card.
  6. Fee Free ATM Withdrawals: Wise lets you withdraw $100 US per month or equivalent without fees. Then a 1.75% fee applies. In my experience, however, Wise has waived all fees when I withdraw from 7-11 ATMs in Japan.

Learn more: Read our Wise Account review or visit the Wise website

Compare AUD to JPY Rates With Monito's Comparison Engine

Fees fluctuate all the time. As a result, Wise will not always be the cheapest option to buy Japanese yen with Australian dollars. To ensure you're getting the best deal on your currency exchange, run a search on Monito's comparison engine.

Monito monitors the rates and fees of all major money transfer competitors, allowing you to easily find the service offering the best combination of mid-market rates and low fees. By using Monito, you can rest assured that you're getting the most favorable exchange rate with no hidden costs:

Compare today's best rates to buy Japanese Yen with AUD

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