As Japan’s yen peaks, is the era of budget-friendly trips coming to an end for Australian travellers?
Summary
The Japanese yen, which had been getting weaker for years, has recently started to get stronger because Japan and the United States stepped in to support it. This change might make trips to Japan more expensive for Australian tourists, who have enjoyed budget-friendly travel there due to the weaker yen and a stronger Australian dollar.Key Facts
- The yen’s long decline has helped make Japan a popular, affordable destination for Australians.
- About 1 million Australians visited Japan in 2025-26, three times more than ten years ago.
- The Australian dollar increased by over 30% in value against the yen after the pandemic.
- Japan and the US have intervened in the currency market to support the yen.
- The “carry trade” strategy, where investors borrow yen to invest in higher-yielding currencies, has pressured the yen to weaken.
- The yen recently reached its highest value against the US and Australian dollars in six months.
- If the yen strengthens further, it could make Japan less affordable for tourists.
- Other Asian countries like Vietnam and China are becoming attractive alternatives for Australian travelers.
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