The currency of Japan is the Japanese yen, written with the symbol ¥ and the ISO code JPY. As of 2026, one US dollar buys roughly 150 yen. The yen has been Japan's sole legal tender since 1871, and today it ranks as the third most traded currency in the world, behind only the US dollar and the euro.
What Is the Japanese Yen?
The yen (en in Japanese, meaning "round object") is the official money of Japan, issued and managed by the Bank of Japan, the country's central bank. It is a decimal currency: historically one yen was divided into 100 sen, but the sen has not circulated since 1953, so all everyday prices today are quoted in whole yen.
The yen plays an outsized role in global finance relative to Japan's population. It is widely held as a reserve currency and is treated by investors as a "safe haven" asset, meaning demand for it often rises during periods of international economic uncertainty. Because Japan is one of the world's largest economies and a major exporter, the value of the yen against the dollar and euro is closely watched by traders, manufacturers, and travelers alike. To explore more about the country itself, see our japan country guide.
Banknotes and Coins in Circulation
Japan uses both paper banknotes and metal coins, and you will handle a wide range of both during any visit. The current banknote denominations are:
- ¥1,000 – features Kitasato Shibasaburo, a pioneering bacteriologist
- ¥5,000 – features Tsuda Umeko, an educator and women's-education advocate
- ¥10,000 – features Shibusawa Eiichi, regarded as the father of modern Japanese capitalism
A ¥2,000 note also exists but is rarely seen in daily use. The coins come in six denominations: ¥1, ¥5, ¥10, ¥50, ¥100, and ¥500. The lightweight aluminum ¥1 coin weighs just one gram and is so light it can float on the surface of water through surface tension. Both the ¥5 and ¥50 coins have a distinctive hole punched through the center, a feature shared by only a handful of currencies worldwide. The ¥500 coin is one of the highest-value coins in regular circulation anywhere on Earth.
A Brief History of the Yen
The yen was created in 1871 by the Meiji government as part of a sweeping modernization of Japan. It replaced the tangled feudal system of clan-issued notes and varied coins with a single, decimal-based national currency modeled on European examples. After World War II the yen lost enormous value to inflation, and in 1949 it was fixed at 360 yen to the US dollar under the Bretton Woods system. That peg ended in the early 1970s, after which the yen floated and appreciated dramatically, peaking in strength during the late 1980s and again in subsequent decades.
In July 2024 Japan issued a fully redesigned series of banknotes. These notes were the first in the world to use 3D holographic portraits, in which the engraved faces appear to rotate as the bill is tilted, alongside other advanced anti-counterfeiting features. Partly as a result of such measures, Japan maintains one of the lowest counterfeiting rates of any major currency.
Using Money as a Traveler in Japan
Despite its high-tech reputation, Japan remains a notably cash-heavy society. Many small restaurants, family-run shops, temples, rural inns, and ticket machines still expect physical yen, so it is wise to always carry some cash. Credit cards and contactless IC cards (such as Suica and Pasmo) are increasingly accepted in cities, major retailers, and on public transport, but coverage thins out quickly in the countryside.
- Withdrawing cash: ATMs at 7-Eleven convenience stores and Japan Post offices reliably accept foreign-issued cards, often around the clock.
- Tipping: There is no tipping culture in Japan. Leaving extra money can cause confusion and is not expected at restaurants, taxis, or hotels.
- Coin trays: At checkout you typically place cash in a small tray rather than handing it directly to the cashier.
Japan's enthusiasm for cash is mirrored by its vending machines: the country has several million machines nationwide that dispense drinks and snacks, nearly all accepting both coins and notes.
The Yen in the Global Economy
As the third most traded currency in the world, the yen is a fixture of international foreign-exchange markets. Its movements influence the cost of Japanese exports such as cars and electronics, and a weaker yen tends to make travel to Japan cheaper for foreign visitors while raising the price of imports for residents. The Bank of Japan's interest-rate decisions and currency interventions are followed globally for this reason. The ¥5 coin, whose pronunciation (go-en) sounds like a word for "good fortune" or "connection," is commonly offered at Shinto shrines as a lucky donation, showing how the currency is woven into Japanese culture as well as its economy.
Frequently Asked Questions
What is the symbol and code for Japanese money?
Japanese money uses the symbol ¥ and the international ISO 4217 code JPY. Prices in Japan are written either with the ¥ symbol or with the kanji character 円 (en) after the number.
How much is 1 US dollar in Japanese yen?
As of 2026, one US dollar is worth approximately 150 yen, though exchange rates fluctuate daily based on market conditions and central-bank policy.
Does Japan still use the sen?
No. The sen was the historic subunit equal to one-hundredth of a yen, but it was removed from circulation in 1953. All everyday transactions in Japan are now conducted in whole yen.
Can I use credit cards everywhere in Japan?
Not everywhere. Cards and IC cards are widely accepted in cities and large stores, but many small businesses, rural areas, and temples remain cash-only, so carrying yen is strongly recommended.