The Australian dollar is on a roll, hitting a 40-year high against the Japanese yen, making trips to Japan more affordable than ever. With the Aussie dollar buying as much as 110.79 yen, travelers are seeing a fantastic boost in their spending power, with this exchange rate not seen since 1986. If you’ve been planning a trip to Japan, now might be the time to act as the currency trend continues to favor Australian tourists.
What’s Driving the Strength of the Aussie Dollar?
So, why is the Australian dollar so strong right now? Experts say it’s a mix of factors, but momentum from the Australian economy plays a significant role, reports ABC News. The Aussie dollar has been performing well against other currencies this year, including the US dollar, which has helped boost its value against the yen. Analysts also point to the anticipation of an upcoming interest rate hike, which has further fueled the Aussie dollar’s strength.
But it’s not just Australia’s economy making waves. Japan’s economic situation has also contributed to the weaker yen. Japan’s government, under Prime Minister Sanae Takaichi, has made plans to loosen spending, raising concerns about Japan’s growing debt burden. This has led to a depreciation of the yen, further boosting the Aussie dollar in comparison.
The Impact on Aussie Travelers
The current exchange rate has already had a noticeable impact on tourism, with record numbers of Australians visiting Japan. In 2025, over one million Australians made the trip, thanks to the affordability of travel now that the Aussie dollar is so strong. For travelers, this is great news—every dollar goes further, whether it’s for accommodation, food, or sightseeing.
But there’s a bit of a dilemma for those looking to book trips. With the Aussie dollar so strong, many are asking themselves whether they should book now or wait, wondering if the rate could get even better. The question of timing is a tricky one, but for now, the currency trend seems to be in favor of Aussie tourists, making Japan an incredibly appealing destination.
Is the Strength of the Aussie Dollar Sustainable?
As with any currency, the value of the Australian dollar can be volatile, and things could change quickly. Experts like NAB’s Ray Attrill have noted that there’s no immediate sign of the Aussie dollar losing steam, but currency markets can always shift. Whether the Aussie dollar will continue to hover at these high levels or fall back in the near future remains to be seen, but for now, Australians heading to Japan have a golden opportunity to make the most of their currency advantage.
For anyone considering travel, it’s hard to ignore the opportunity presented by this strong Aussie dollar. The question is: will it last, or should we book those plane tickets before the dollar dips? Only time will tell.
