Wednesday, 11th September 2013
In Business In Japan,
Record tourism drives demand for yen
A dramatic rise in the number of tourists taking advantage of the cheaper yen was yesterday (September 10th ) identified by the Wall Street Journal as the primary reason that the country's economy is taking a sharp upturn.
However, economists said that the revised gross domestic product figures mean that the surge in tourism has had the unanticipated consequence of driving up demand for Japanese banknotes.
David Swann, a currency expert at Travelex, said that the yen's dramatic drop against other major currencies over the year "obviously makes Japan a more attractive destination to inbound tourists, who will see a significant improvement to their spending power".
He added that the trend has been reflected around the world, with increased sales of yen recorded in the UK, Australia, Italy, Germany and the Netherlands.
As of 10:55 BST, £1 sterling will get 158 yen.
Since prime minister Shinzo Abe came to power in late 2012, the government has been driving the Bank of Japan to boost inflation in an effort to attract exports and boost the country's ailing economy.
Written by Graham McPherson
Related news stories:
Bon dance Guinness world record attempt to be held in August (10th June 2015)
Japanese sushi restaurant breaks record with £470,000 tuna (5th January 2012)
Suzuki breaks Major League Baseball record (15th September 2009)
World's oldest competitive sprinter sets record at 105 (24th September 2015)
Japan sets Twitter record (10th January 2011)