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<\/p>\nAustralians visiting Japan are seeing their trips get even cheaper as the Australian dollar hits a four-decade high against the Japanese yen, foreign exchange analysts say.<\/p>\n
The Australian dollar strengthened against Japan’s currency on Monday, buying 110.79 yen \u2014 a high not seen since 1986, according to NAB’s Head of FX Strategy, Ray Attrill.<\/p>\n
Australia’s exchange rate with Japan has grown increasingly favourable to tourists, which have surged to record numbers and topped more than one million visitors in 2025.<\/p>\n
“It’s probably the cheapest place in the developed world, basically, [for Australians] to take a holiday,” Mr Attrill said.<\/p>\n
“From an affordability point of view, Japan has never been cheaper for Australian tourists.”<\/p>\n
Analysts said the currency movements partly reflected momentum for the Australian dollar, which has performed well against the US dollar this year.<\/p>\n
While the Australian dollar was buying 109.2 yen by today, the rate remained high compared to recent decades, Mr Attrill said.<\/p>\n
CBA economist and currency strategist Carol Kong said the build-up in anticipation ahead of this month’s interest rate hike also played a role in the strengthening dollar.<\/p>\n
“That really drove the Aussie dollar up and in turn, that supported the Aussie dollar against the Japanese yen,” she said.<\/p>\n
“You have to go back to the 1990s to see Aussie yen trading at this current level. It is definitely historically strong.”<\/p>\n
It was also no coincidence the Australian dollar reached its multi-decade high against the yen following the landslide election victory on Sunday led by Japan’s prime minister Sanae Takaichi, who has signalled she will loosen government spending, Mr Attrill said.<\/p>\n
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Sanae Takaichi led her party to a resounding win, increasing its share of seats in parliament.<\/p>\n
\u00a0 (Reuters: Kim Kyung-Hoon)<\/p>\n
Ms Takaichi’s fiscal plans had raised concerns about Japan’s debt burden, analysts said.<\/p>\n
“That has been unnerving to the bond market in recent months, and it’s also been showing up in a weaker currency,” Mr Attrill said.<\/p>\n
Currency dilemma facing Australian tourists<\/p>\n