As Japan’s yen peaks, is the era of budget-friendly trips coming to an end for Australian travellers?
The Guardian
•Sun, 13 Sep 2026 15:00:09 GMT
📰 What Happened
The Japanese yen has climbed to its highest level against the US and Australian dollars in about six months after Tokyo and Washington intervened in currency markets to support the currency, The Guardian reports. US treasury secretary Scott Bessent publicly challenged traders betting against the joint effort to bolster the yen. The article examines what the shift means for the roughly 1 million Australians who travelled to Japan in 2025-26 — a threefold increase on a decade earlier — noting the Australian dollar had risen by well over 30% against the yen since the pandemic reopening. Analysts at IG warned that if the yen breaks through a series of technical levels, “all bets are off” and it could rise to levels not seen since 2023.
🔍 The Backstory
The yen’s long decline had become one of the most reliable trades in global currency markets, helping make Japan the third-most visited destination for Australians after Indonesia and New Zealand, according to the Australian Bureau of Statistics. Part of that decline was driven by the “carry trade” — borrowing yen at low interest rates to invest in higher-yielding currencies — which put persistent downward pressure on the currency. Japanese authorities want to halt the fall because it has driven up energy and food import costs, and the US recently joined the effort partly to deter Tokyo from selling US treasuries, which would push up the US government’s own borrowing costs.
🎯 Why It Matters
Australian Travel Industry Association chief executive Dean Long calls the currency position “once-in-a-generation”, while Western Sydney University tourism professor Joseph Cheer says Australians have “a great deal of tolerance” before they rethink Japan’s value proposition. A sustained yen rise could redirect demand to competitors: Vietnam visits by Australians are now more than double their level a decade ago, and more Australians visited China than the US last financial year, reversing long-term holiday trends. For travellers and the travel industry, the key question is whether the yen’s move is a short intervention-driven blip or the start of a longer trend.
The Japanese yen has climbed to its highest level against the US and Australian dollars in about six months after Tokyo and Washington intervened in currency markets to support the currency, The Guardian reports. US treasury secretary Scott Bessent publicly challenged traders betting against the joint effort to bolster the yen. The article examines what the shift means for the roughly 1 million Australians who travelled to Japan in 2025-26 — a threefold increase on a decade earlier — noting the Australian dollar had risen by well over 30% against the yen since the pandemic reopening. Analysts at IG warned that if the yen breaks through a series of technical levels, “all bets are off” and it could rise to levels not seen since 2023.
The yen’s long decline had become one of the most reliable trades in global currency markets, helping make Japan the third-most visited destination for Australians after Indonesia and New Zealand, according to the Australian Bureau of Statistics. Part of that decline was driven by the “carry trade” — borrowing yen at low interest rates to invest in higher-yielding currencies — which put persistent downward pressure on the currency. Japanese authorities want to halt the fall because it has driven up energy and food import costs, and the US recently joined the effort partly to deter Tokyo from selling US treasuries, which would push up the US government’s own borrowing costs.
Australian Travel Industry Association chief executive Dean Long calls the currency position “once-in-a-generation”, while Western Sydney University tourism professor Joseph Cheer says Australians have “a great deal of tolerance” before they rethink Japan’s value proposition. A sustained yen rise could redirect demand to competitors: Vietnam visits by Australians are now more than double their level a decade ago, and more Australians visited China than the US last financial year, reversing long-term holiday trends. For travellers and the travel industry, the key question is whether the yen’s move is a short intervention-driven blip or the start of a longer trend.