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
