In currency trading pair most of the currencies are quoted for 1 $/ 1Euro/1 Re, Why for JPY its quoted for 100 YEN & its quoted with 2 decimals?
In currency trading pair most of the currencies are quoted for 1 $/ 1Euro/1 Re, Why for JPY its quoted for 100 YEN?
Currency traditionally have been paired against the dollar. The currency can be pegged in either 1, 10 or 100 units.
IN USD JPY case, if you peg 1 YEN to USD then in todays value you get $0.0097 to the YEN… which is less than the least denomination amount that gets minted in US. Historically this has been even lower with maximum being $0.07672 to the YEN in Dec 2011. So as you see it has never crossed a level which is greater that the least value of minted denomination. Hence pegging it to 100 Yen makes sense.
You maybe interested to know that Mexican Peso is pegged at 10 units to the Dollar
thanks for down voting ! can you explain why ?