Japanese Yen Exchange Rate Hits 4.85: 4 Major Currency Exchange Tips Every Investor and Traveler Should Know

The NT dollar to Japanese Yen has already reached a level of 4.85. What does this number mean? Compared to the relatively stable NT dollar to HK dollar, the Yen is more volatile and offers more opportunities. Whether you plan to visit Japan next year or want to hedge against NT dollar depreciation by converting some funds into Yen, you first need to understand how to exchange money most cost-effectively. We break down the latest four currency exchange methods for 2025, so you can instantly grasp the cost differences.

Why pay attention to the Yen exchange rate now?

The Yen is not just a travel currency but also one of the world’s three major safe-haven currencies (alongside the US dollar and Swiss franc). Over the past year, NT dollar to Yen has risen from 4.46 at the start of the year to 4.85 now, an appreciation of 8.7%. This upward trend is quite significant for Taiwanese investors.

Travel aspect: Most Japanese merchants only accept cash (credit card penetration about 60%), so whether shopping in Tokyo, skiing in Hokkaido, or vacationing in Okinawa, you need to prepare enough Yen cash.

Investment aspect: As a safe-haven currency, Yen can hedge against Taiwan stock market volatility. Especially when global uncertainties increase (such as geopolitical conflicts), capital tends to flow into Yen, making holding Yen positions a form of insurance. Taiwan’s currency exchange demand increased by 25% in the second half of the year, reflecting this trend.

Four exchange methods, how to choose the most cost-effective?

Many think exchanging Yen only requires going to a bank, but just the exchange rate difference can cost you several cups of bubble tea. We rank the costs from lowest to highest:

1. Foreign currency ATM: Most flexible, but limited locations

Using a chip-enabled financial card at an overseas currency ATM to withdraw Yen cash 24/7, deducting only NT$5 cross-bank fee from your NT account, with no currency exchange fee. This is the most convenient method, suitable for urgent needs.

Disadvantages: Only about 200 ATMs nationwide, fixed denominations (1,000/5,000/10,000 Yen), cash may run out during peak times (especially near airports).

Suitable for: Office workers with no time to visit banks, needing emergency cash.

For NT$50,000, estimated cost NT$800-1,200.

2. Online currency exchange, pick-up at airport: Best for travel planning

No need for a foreign currency account. Simply specify currency, amount, pick-up branch, and date on the bank’s official website. After completion, bring ID and transaction notification to the counter for pickup. Bank of Taiwan’s “Easy Purchase” online exchange has no handling fee (using Taiwan Pay costs only NT$10), with about 0.5% better exchange rate, and you can reserve at airport branches (Taoyuan Airport has 14 Bank of Taiwan locations, 2 open 24 hours).

This is the best pre-travel reservation method, ideal for well-planned travelers.

Disadvantages: Needs to be booked 1-3 days in advance, pickup during bank hours, branch cannot be changed once booked.

Suitable for: Travelers with confirmed itineraries.

For NT$50,000, estimated cost NT$300-800.

3. Online exchange, transfer to foreign currency account: Best for forex investors

Use online banking app to convert NT$ into Yen and deposit into a foreign currency account, using the “spot sell rate” (about 1% better than cash selling rate). Later, you can choose to deposit fixed-term or withdraw cash. When withdrawing cash, there will be a currency conversion fee (minimum NT$100).

This method is best for phased entry, gradually buying at lows (e.g., when NT$ to Yen is below 4.80) to average costs, and eventually investing in Yen fixed deposits (annual interest rate about 1.5-1.8%).

Disadvantages: Need to open a foreign currency account first; extra fees apply when withdrawing cash.

Suitable for: Experienced forex investors planning to hold Yen long-term.

For NT$50,000, estimated cost NT$500-1,000.

4. Over-the-counter cash exchange: Most traditional, highest cost

Carry NT$ cash directly to a bank or airport counter to exchange for Yen cash. Using the “cash selling rate” (1-2% worse than spot rate), plus possible handling fees, results in the highest costs.

For example, based on Taiwan Bank’s December 10, 2025 rate, cash selling rate is about NT$0.2060 per Yen (roughly 4.85 Yen per NT$), some banks add NT$100-200 handling fee.

Advantages: Most secure, full denominations, staff assistance available.

Disadvantages: Higher exchange rate spread, fees, limited by bank hours.

Suitable for: Those unfamiliar with online methods or needing small amounts urgently (e.g., at the airport).

For NT$50,000, estimated cost NT$1,500-2,000.

Quick guide to exchange rate basics

Cash rate vs. spot rate: Cash rate is used for physical cash transactions, usually less favorable; spot rate applies to electronic transfers (T+2 settlement), closer to international market price, about 1-2% cheaper.

How much for NT$10,000?: At NT$4.85/ Yen, NT$10,000 can buy about 48,500 Yen at cash rate or 48,700 Yen at spot rate, a difference of about 200 Yen.

What to bring for counter exchange?: Taiwanese need ID card + passport; foreigners need passport + residence permit. For online booking, bring transaction notification. Under 20 requires parental accompaniment.

Is it worth exchanging Yen now? Investment perspective analysis

Technically, the Yen is at a critical turning point. Japan’s central bank governor Ueda Kazuo recently made hawkish comments, boosting rate hike expectations to 80%. The December 19 meeting may raise rates by 0.25 bps to 0.75% (30-year high), with Japanese bond yields reaching 17-year high of 1.93%. USD/JPY has fallen from a high of 160 at the start of the year to 154.58 now, possibly testing 155 in the short term, but medium to long-term forecasts suggest below 150.

Conclusion: Yes, but stagger your entries. The Yen remains volatile; short-term arbitrage trades may cause 2-5% fluctuations. Full conversion at once carries higher risk. It’s better to buy in phases, reducing single-entry costs.

After converting Yen, don’t let your money sit idle. Consider four options:

• Yen fixed deposit: Stable, annual interest 1.5-1.8%
• Yen insurance policy: Medium-term holding, guaranteed interest 2-3%
• Yen ETFs (e.g., 00675U): Growth-oriented, annual management fee 0.4%, suitable for dollar-cost averaging
• Forex swing trading: Track USD/JPY or EUR/JPY, long and short positions, suitable for active traders

Beginner currency exchange cheat sheet

If your budget is NT$50,000-200,000, a recommended mix: Online exchange + foreign currency ATM. Lock in favorable rates online first, then pick up some cash at the airport or branch for emergencies, and use ATMs to top up as needed. This way, you enjoy good rates and flexibility.

Remember two principles:

1. Phased exchange: Avoid all at once to reduce exchange rate risk.
2. After exchange, don’t leave it idle: Transfer Yen into fixed deposits, ETFs, or other investments to keep your funds growing.

This way, you not only save on travel costs but also add a layer of protection during global market turbulence.