Currency is a system of money that is in common use and accepted as a medium of exchange for goods and services within an economy. It can take various forms, including physical notes and coins, as well as digital or electronic currencies. Currency serves three primary functions: it acts as a unit of account, a medium of exchange, and a store of value.
As a unit of account, it provides a standard measure of value for pricing goods and services, which facilitates trade and economic calculations. As a medium of exchange, currency enables the buying and selling of products without the need for barter, simplifying transactions. As a store of value, currency allows individuals to save and represent wealth over time, although this can be affected by factors such as inflation.
Currencies can be classified as fiat money, which has value by government decree and does not have intrinsic value based on physical commodities, or commodity money, which is backed by a physical commodity like gold or silver. Currency can also be divided into national currencies, which are used within specific countries, and foreign currencies, which are used outside one’s home country.
Japan's yen has surged, reaching its strongest position since early December, with the USD/JPY rate near a critical 150.00 mark. The yen has gained 4.8% against the US dollar and…