The Japanese Yen keeps tumbling, and there’s a lot of factors that go into that. But shouldn’t the massive number of people visiting Japan and buying yen help boost their currency?
In: Economics
Tourism makes up a percentage of economic activity, but by no means significant enough to have immediate impacts. There would need to be a dramatic increase in tourism numbers to have an unexpected effect. As the expected effect is already built in. All that could be happening is it is slowing the decrease on pressures on the currency, instead of halting it.
These kinds of effects have a lag time, and are heavily dependent on sentiment. So until the economic data comes in that leads to more positive indicators, investors that drive growth will tend to remain pessimistic.
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