What is a PIP?
PIP stands for percentage in point and is the smallest amount that a currency trades in on the FX. A pip is typically 1/100 of 1%. For example, when you buy gas it’s quoted at 3.29. Just imagine it is now quoted at 3.2900. The change in the 4th decimal point in gas per gallon now equals a pip. Won’t you feel better the next time you fill up and gas is now only 3.2901?
The Japanese yen, having not been revalued since the WWII, is the only major currency exception to that rule.