The Japanese yen briefly dropped to a new 34-year low below the 160 yen to U.S. dollar level on foreign exchange markets on Monday morning.
It marked the first time since April 1990 that the U.S. dollar has topped the 160 yen line.
As Japan's national golden week unfolded on Saturday, the feeble yen is becoming a headache for Japanese travelers while a boon for many foreign visitors.
During the holiday that runs through May 6, more Japanese holidaymakers cite growing economic challenges compared to last year, local media reports showed.
About 23.3 million people in Japan, roughly 90 percent of pre-pandemic levels, are expected to travel during the holidays, but more than 70 percent of respondents are choosing not to take overnight trips, state broadcaster NHK reported, citing a survey by major travel agency JTB.
"The Yen is so weak. If you compare it to not long ago when a dollar was worth more than 100 yen, now it's 1.5 times as much. I would not [be planning overseas travel] anytime soon," said a resident.
"The petrol [prices are going up] and the car [prices are going up], we are beginning to feel the burden from the lowering yen," said another resident.
"I am very worried that if the Yen continues to depreciate, it may affect the Japanese economy. Although I think this is a temporary phenomenon, there is nothing we can do to change it, I guess we just have to endure for a while," said another resident.
Meanwhile, many inbound tourists said that the yen's depreciation is making it easier for them to go shopping and sightseeing in Japan.
"For my side, I exchanged my Yen before, when I thought it was pretty favorable, and it's just like, I thought, I had it pretty well. But again it changed about 6 percent in the last like three months or something, so it has been pretty insane. So I lost a bit in that sense," said a tourist from Germany.
"My Canadian dollar, of course, I get more Yen. It's almost, I think, I paid for one dollar I got 100 yen, where I was here in November and I got 90 yen for one dollar. So, my buying power is better. But I also deal in Canada and I work with a lot of Japanese equipment that we purchase from Epson and other companies. So, its big advantage back home as well," said a tourist from Canada.
Some market participants suspected that Japanese authorities may have stepped into the currency market to stem the yen's dive.
A senior Finance Ministry official declined to comment on the yen's sharp rise, Kyodo News reported on Monday.
The Japanese currency also fell to around 171 against the euro at one stage, its lowest level since euro was introduced in 1999.
Japanese Yen plunges to 34-year low against US dollar, raising economic concerns
Chinese President Xi Jinping held a restrictive meeting with Russian President Vladimir Putin on Thursday at Zhongnanhai in Beijing, during which they had in-depth exchanges on strategic issues of common concern.
The world is undergoing changes unseen in a century and entering a new period of turbulence and transformation, Xi noted, adding that in the face of the ever-evolving world landscape with volatility and turmoil, China has maintained its strategic resolve.
He said that under the leadership of the Communist Party of China, the Chinese people have overcome various difficulties and challenges, and are striving to promote high-quality development and Chinese modernization.
China is willing to work with Russia and other countries to enhance solidarity and cooperation, steer global governance in the right direction, jointly safeguard international fairness and justice, and promote world peace and common development, Xi said.
Noting that China's development is unstoppable and that no force can contain China's growth and progress, Putin said that Russia is willing to improve cooperation with China and other Global South countries to promote international fairness and justice, and to work toward a more equal and multipolar world.
The two heads of state had an in-depth exchange of views on the Ukraine crisis.
Xi elaborated on China's consistent position and efforts to promote the political settlement of the Ukraine issue, stressing that to deal with any major issue, it is necessary to address both the symptoms and the root causes, and to plan for the present as well as for the long term.
He said the core of the Global Security Initiative is advocating the vision of common, comprehensive, cooperative and sustainable security, and the fundamental solution to the Ukraine issue is to promote the establishment of a new balanced, effective and sustainable security architecture.
Xi said China supports the convening of an international peace conference recognized by Russia and Ukraine at an appropriate time with equal participation and fair discussion of all options, so as to push for an early political settlement of the Ukraine issue, and China stands ready to continue to play a constructive role in this regard.
Putin introduced the relevant views and positions of Russia, saying that Russia appreciates China's objective, just and balanced position on the Ukraine issue and welcomes China to continue to play an important and constructive role in the political settlement of the issue. Russia is committed to resolving the Ukraine issue through political negotiations and is willing to demonstrate sincerity and maintain close communication with China in this regard, he said.
Xi said that over the years, they have had many meetings and every exchange has been candid, in-depth and fruitful.
Xi said he is ready to stay in close contact with President Putin and work together to steer the development of China-Russia relations in the right direction, guide the China-Russia comprehensive strategic partnership of coordination for the new era to achieve steady and lasting progress, bring more benefits to the two peoples, and contribute to world security and stability.
Putin thanked Xi for his warm hospitality, saying that he is willing to maintain close communication with Xi, implement the important consensus reached between them, and ensure the full development of the Russia-China comprehensive strategic partnership of coordination for the new era.
Xi holds restrictive meeting with Putin at Zhongnanhai
