{"id":769222,"date":"2026-06-30T05:26:11","date_gmt":"2026-06-30T05:26:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/769222\/"},"modified":"2026-06-30T05:26:11","modified_gmt":"2026-06-30T05:26:11","slug":"australian-dollar-plunging-japanese-yen-offers-cheaper-holidays","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/769222\/","title":{"rendered":"Australian dollar: Plunging Japanese yen offers cheaper holidays"},"content":{"rendered":"

The plunging Japanese yen has opened the door for Australians to keep enjoying bargain holidays<\/a> in a favourite tourist destination.<\/p>\n

Overnight the Japanese currency dropped to its lowest level against the US dollar in nearly 40 years, with the greenback worth 162 yen, driven largely by Japan\u2019s historically low interest rates and a broad weakness of its currency.<\/p>\n

\"\"<\/p>\n

The Japanese yen has slumped to its lowest level against the US dollar for 40 years.\u00a0AP Photo\/Hiro Komae<\/p>\n

Early today the Aussie dollar was trading at 111 yen.<\/p>\n

The yen\u2019s sharp drop came after Japanese Prime Minister Takaichi <\/a>earlier this month unveiled a long\u2011term strategy aimed at accelerating Japan\u2019s economic development, based on bringing down the country\u2019s high debt levels.<\/p>\n

Confidence in Japan\u2019s economy was also dented by the impact of the Iran-US war <\/a>on world fuel supplies. The Asian economic giant relies largely on energy imports from the Middle East.<\/p>\n

Investors are now concerned the Japanese government will be forced to intervene to stabilise the yen.<\/p>\n

Currency strategist at Commonwealth Bank of Australia, Carol Kong, told nine.com.au<\/a> the Aussie dollar was now trading about 20 per cent higher against the yen compared with a year ago.<\/p>\n

\u201cIt is getting very high historically speaking \u2026 it will boost the appeal of Japan as a holiday destination for Australian tourists,\u201d she said.<\/p>\n

She said Japan\u2019s low inflation rate of 1.5 per cent also offers Australian travellers more spending power and value for money.<\/p>\n

But analysts expect a correction between the dollar and yen later this year.<\/p>\n

\u201cWe do expect the Aussie-Yen to trend lower to about 103 \u2026 so it may well worth be locking in a Japan trip now,\u201d Wong said.<\/p>\n

The Australian dollar began its surge against the Japanese currency two years, offering bargain travel for tourists.<\/p>\n

Figures from the \u00a0Japan National Tourism Organisation\u00a0show 1.06 million Australians visited the country in 2025.<\/p>\n

\"female<\/p>\n

Millions of tourists visit Japan every year, with affordability a major attraction.\u00a0iStock<\/p>\n

In contrast to its strength against the yen, the Australian dollar remains in the doldrums against the US currency, trading at 69 US cents today.<\/p>\n

Its weak position is uncertainty whether the Reserve Bank will keep interest rates <\/a>on hold, a perceived willingness of the US Federal Reserve to consider raising them and renewed fighting in the Middle East early this week.<\/p>\n

\u201cAfter four straight weeks lower, the Australian dollar remains heavy and listless, parked around 69 cents and still stuck in a funk, of sorts,\u201d Westpac head of foreign exchange strategy Richard Franulovich said.<\/p>\n

New Federal Reserve Chairman Kevin Warsh has pledged to take a tough line on fighting US inflation, and American payroll figures will be closely watched in Australia.<\/p>\n

\u201cFor the Australian dollar, Warsh and US payrolls carry more weight than the Iran backdrop,\u201d Franulovich said.<\/p>\n

But he says weakening commodity prices are also impacting the Australian dollar along with other currencies sensitive to the ups and downs in the sector, such as New Zealand and Canada.<\/p>\n","protected":false},"excerpt":{"rendered":"The plunging Japanese yen has opened the door for Australians to keep enjoying bargain holidays in a favourite…\n","protected":false},"author":2,"featured_media":769223,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[64,63,99,164],"class_list":["post-769222","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-au","tag-australia","tag-business","tag-economy"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/769222","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=769222"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/769222\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/769223"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=769222"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=769222"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=769222"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}