This represents the quotation of the exchange rate of the New Zealand dollar - Japanese yen pair. The NZD (the 'base currency') is quoted according to the JPY, the 'counter currency' (or quoted currency). The yen has traditionally been a low yielding currency, making it attractive for funding carry trades - traders borrow cheaply in JPY and invest in higher yielding currencies like NZD. Investors tend to favor carry trades when stability and economic performance are the subject of optimism. Conversely, they will shy away from them in times of market stress. The evolution of broad market sentiment is therefore likely to have an impact on the NZD / JPY pair. This pair is also reacting to economic news - both domestic and from major economic partners, particularly China - which will determine the Reserve Bank of New Zealand's forecast for its monetary policy.