From the Guardian · · 1m 40s
The cheap Japan trip may be ending
A decade of weak yen turned Japan into Australia's bargain playground, and that trade is now unravelling.
In brief
A decade of weak yen turned Japan into Australia's bargain playground, and that trade is now unravelling. The yen's slide, not Japan getting cheaper, is what made those trips affordable, and Tokyo and Washington are now working to reverse it. Originally reported by the Guardian.
The one safe bet breaks
For years traders could count on the yen falling. That changed in recent weeks when Tokyo and Washington stepped in together to prop up the currency.
Bessent dares the traders
The US treasury secretary, Scott Bessent, openly challenged traders to bet against the joint effort to lift the yen.
A million Australians went
Japan is now Australia's third-most visited destination after Indonesia and New Zealand. About 1 million Australians went in 2025-26, three times the number a decade ago.
A once-in-a-generation window
The Australian dollar gained well over 30% against the yen, so shopping in Tokyo and dining in Osaka suddenly felt affordable. Dean Long compares it to the parity years of 2010 to 2013.
“Japan has always had a high level of appeal, but suddenly people could actually do the things that they wanted to do because of the currency”
The carry trade holds it down
Wall Street borrows cheap yen to buy higher-yielding currencies, which keeps the yen weak. A real recovery needs investors to unwind that trade.
Why Japan wants it stronger
A plunging yen pushed up energy and food import costs. Washington joined in to stop Tokyo selling US treasuries, which would raise its own borrowing costs.
Vietnam and Chinamaxxing wait
Joseph Cheer says Australians will tolerate a pricier Japan for a while. But Vietnam visits have more than doubled in a decade, and more Australians visited China last year than the US.
“South Korea can give Japan a real run for its money and everyone's trying to fill up on Chinese culture”
At a glance
The yen's slide, not Japan getting cheaper, is what made those trips affordable, and Tokyo and Washington are now working to reverse it.
