The Australian dollar is rising against the Japanese yen as it weakens to levels unseen in decades, boosting the value of holidays to Japan for Australian travellers. In late July, the US and Japanese governments jointly intervened in currency markets to prop up the yen after it hit its lowest level against the US dollar since 1986, but the support proved temporary.

Japan's weak currency makes its exports cheaper and more competitive globally, helping drive a record current account surplus this year, but increases the cost of imports including food and energy. The US government is concerned that a weaker yen makes Japanese goods more competitive against American manufactures at a time the Trump administration is pushing tariffs and domestic manufacturing growth, Rand Low reports for The Conversation.