Dollar At ¥150

Now that we're in a new month, it is time to take a peek at how the U.S. dollar is faring against the Japanese yen in foreign exchange.

According to SaltWire:

Against the yen, the dollar was up 0.26% at 150.36, after rising 6.3% in the first two months of the year. The moves put the Japanese currency close to its weakest levels since November and not far off the lowest since 1990.

This is one of the big reasons why travel to Japan is more popular than ever. Travelers are able to exchange for more yen to spend. This boosts American tourists' purchasing power in Japan.

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Yen Fall May Prove Debilitating To Japan

Above, a food market at the Tokyo Skytree. Photo by Armand Vaquer.

Despite price hikes at some restaurants, hotels and, coming this fall, the price of Japan Rail Passes, the dollar is seeing the best purchasing power in Japan in years.

As good as this is for American and other foreign travelers, it may not be good for the financial health of Japan itself.

According to the Mainichi Shimbun:

TOKYO (Kyodo) -- The yen's recent weakening may not be as rapid as last year when it lost around 20 percent of its value relative to the U.S. dollar, but the prospect of it staying longer at current levels is already a cause for alarm for Japan Inc. and consumers.

The yen is in the 143 zone to the U.S. dollar, far from around 130 that major Japanese firms expect the currency pair to average in the current business year to next March. The euro has also hit a 15-year high versus the yen near 157.

While Japanese authorities say they are closely monitoring forex developments due to the importance of stable currency moves that reflect economic fundamentals, the yen's recent weakness is largely due to the divergence of monetary policies between Japan and its peers in the United States and Europe.

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Japan Eager To Welcome Tourists Amid Weak Yen

Above, Akihabara electronics shopping district of Tokyo. Photo by Armand Vaquer.

Tomorrow is the day that Japan welcomes foreign tourists as in the pre-pandemic days.

The big change that the Japanese and tourists are eager for is the "cheap yen", which provides more purchasing power for tourists.

According to the Associated Press:

TOKYO (AP) — It’s hard to tell from his serious demeanor, but Akky International Corp. Chief Executive Hideyuki Abe can barely contain his excitement.

Foreign tourists are coming back, those big-spending visitors from abroad who used to flock into his colorful store in Tokyo’s Akihabara electronics district, its colorful shelves filled with watches and souvenirs like samurai swords and toy cats with bobbing heads.

Individual travelers will be able to visit Japan without visas beginning on Tuesday, just like in pre-COVID-19 times, and electronics stores, airlines and various tourists spots have big hopes for a revival of their businesses.

Japan kept its borders closed to most foreign travelers during much of the pandemic. Only packaged tours have been allowed since June. Meanwhile, the yen has weakened sharply against the dollar, giving some visitors much heftier buying power and making Japan nearly irresistible to bargain hunters.

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