The weak yen

 

For overseas visitors, Japan's appeal continues to grow. To travelers from Europe and North America in particular, Japan is a heavily discounted destination. In an effort to address overtourism, the Japanese government has raised visa application fees for foreign visitors fivefold. Even so, the cost remains relatively modest in dollar terms: about $90 for a single-entry visa and $190 for a multiple-entry visa valid for repeated visits during its validity period.

The weak yen also has profound implications for Japan's long-term strategy. The government recently unveiled details of a public-private investment plan focusing on 17 sectors where Japan is seen as having a competitive edge, including AI-powered robots, semiconductors, batteries and autonomous driving, totaling 370 trillion yen through fiscal 2040. While the figure appears enormous in yen terms, it amounts to just over $2 trillion when converted into dollars. With downward pressure on the currency persisting, markets are increasingly focused on the timing of potential currency intervention by Japanese authorities.